The Latest on Supply and Demand in Housing

<article class="post-498800 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-498800"><span class="entry-date">October 18, 2022</span><div class="entry-header center-block text-center"><h1 class="entry-title">The Latest on Supply and Demand in Housing</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=The+Latest+on+Supply+and+Demand+in+Housing&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fthe-latest-on-supply-and-demand-in-housing%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="The Latest on Supply and Demand in Housing | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164618/20221018-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164618/20221018-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164618/20221018-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=712984-fa409495d5d70154d03a25e81e9540e2">inflection point</a>.<span id="more-47312"></span></p>
<p>The graph below helps tell the story of just how different things are today.</p>
<p><a href="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164643/20221020-MEM-Eng-1.png"><img alt="The Latest on Supply and Demand in Housing | Simplifying The Market" class="aligncenter wp-image-47315" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164643/20221020-MEM-Eng-1.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164643/20221020-MEM-Eng-1.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2022/10/14164643/20221020-MEM-Eng-1-400×300.png 400w" width="650"/></a></p>
<p>This year, buyer demand has eased as higher <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=712984-fa409495d5d70154d03a25e81e9540e2">mortgage rates</a> and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the <a href="https://www.showingtime.com/blog/august-2022-showing-index-results/">latest data</a> from <em>ShowingTime </em>to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year.</p>
<p>Now for a look at how housing supply has changed, turn to the green bar. It uses <a href="https://news.move.com/2022-09-29-Realtor-com-R-September-Housing-Report-Fall-Home-Shoppers-Find-More-Options-Amid-Still-High-Listing-Prices">data</a> from <em>realtor.com</em> to show active listings are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.</p>
<h4><strong>What Does This Inflection Point Mean for Buyers? </strong></h4>
<p>If you’re thinking of buying a home, you’ll have less competition and more options than you would have had last year. Enjoy having more homes to choose from in your home search and lean on a trusted real estate professional to understand how the increase in supply has also increased your <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=712984-fa409495d5d70154d03a25e81e9540e2">negotiation</a> power. That professional can talk you through the opportunities and challenges buyers face in today’s shifting market. You may be surprised to find they’re different than they were a year ago.</p>
<h4><strong>What Does This Inflection Point Mean for Sellers?</strong></h4>
<p>If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with an agent to <a href="https://www.simplifyingthemarket.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/?a=712984-fa409495d5d70154d03a25e81e9540e2">price your house</a> based on current market value, it will still sell despite the inventory gains and moderating <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=712984-fa409495d5d70154d03a25e81e9540e2">buyer demand</a> this year. That’s because there are still buyers out there who want to move, and your house may be exactly what they’re looking for.</p>
<h3><strong>Bottom Line</strong></h3>
<p>If you’re thinking of buying or selling a home, the best place to turn to for information on today’s supply and demand is a trusted real estate professional. Let’s connect so you know what’s happening in our local market and what that means for you.</p>
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