There continues to be a lot of negativity surrounding the real estate market.
Contrary to most news headlines, the housing market fundamentals remain strong.
It all comes down to supply and demand:
- Steady Demand: Rising mortgage rates have decreased the demand for housing, but demand remains strong relative to supply. Certain markets, particularly Southern markets, are still experiencing very strong demand as people migrate to cities with better job growth and lower costs of living.
- Limited Supply: Over 80% of homeowners have mortgage rates locked in below 6%, making them very reluctant to sell. With fewer resales being listed for sale, new home sales are picking up the slack. However, while new construction is picking up the pace, it has lagged behind demand for years.
Keep in mind that real estate is local. The market fundamentals in Fresno, CA, are very different from those in Miami, FL.
To maintain a good pulse on your target markets, continuously monitor national data, as well as regional and local data.