It’s not a dramatization to say that the real estate market has been a roller coaster the last few years. From seller’s markets to buyer’s markets and everything in between, we’ve seen major changes impact real estate agents and brokers—as well as their clients—in extremely short spans of time.
This quarter especially, we saw major shifts in terms of what’s available to buyers and how buyers are responding to that availability.
Let’s explore some of the key trends we saw between Q3 2021 and Q3 2022.
Inventory’s rising, but sales are slowing down
In the last few years, we’ve seen fierce competition among buyers, combined with a relatively low supply of listings. Now, as the industry shifts toward a more balanced market, we’re starting to see more homes on the market. Between Q3 2021 and Q3 2022, we saw a dramatic 16% rise in inventory!
This increase, however, is interestingly juxtaposed with a nearly parallel 14% drop in new listings between Q3 2021 and Q3 2022. This suggests that while more homes are available to buyers, more aren’t entering the market—and those already listed are taking longer to sell.
Interest rates are dissuading buyers
Interest rates, now well recovered from the record lows we saw near the beginning of the pandemic, are creating a barrier for new and experienced buyers alike. Between Q3 2021 and Q3 2022, we saw sold listings drop by 24%.
But as Inman suggested in a recent article, the bleak outlook for buyers doesn’t need to be a barrier. Finding the right deal simply takes more work than it might in another market, and with a tactical approach, real estate agents and brokers can help recover those sales.
Pro tip: Detailed market analysis and insights make it much easier to stay tactical and strategic in unpredictable market shifts. Learn more about that here.
How does your market measure up?
Though national averages provide solid overall insight into the real estate market at large, the numbers vary by individual markets—and that can make a major difference in an agent or broker’s strategy.
Get a closer look at your individual market conditions with BrokerMetrics®, our market insight solution—and make sure your methods match the market.