Don’t gamble with real estate.
Make an informed decision with Carrington’s Market Statistics.
Too often, the real estate market shifts. For one part of the year, home sellers can find quick opportunities to sell their home for the most value. Other parts of the year, buyers can grab local deals in their market. In today’s world, everything is centered with “How’s the market?” However, staying on top of all this can become chaotic, especially during the day-to-day responsibilities we face.
To help you plan out your next real estate transaction (whether you’re a buyer or seller), Carrington has partnered with Altos Research to deliver you up-to-date information about the national market. That way, you stay connected to the real estate market anytime you wish.
Below, you can find two charts detailing the overall price of homes nationally and the current housing inventory in the United States. Each chart gives you an informative glimpse into the national market, so you can make better decisions when it comes to your next real estate transaction.
We’ve also provided you with helpful tips for interpreting the data each chart presents. With this knowledge, you can stay connected to real estate and decide if “now” is the right time to either buy or sell.
So, judge for yourself. How’s the market today?
Average Price For Homes Nationwide
If you notice home prices are on the decline and are continuing to shift downwards, it may be a great time to buy a house. Homes in your market may be more affordable, but it might also signify that there’s a growing housing inventory — meaning you have lots of properties to choose from.
If you notice home prices are on the rise and look to be shifting upwards, you may want to consider waiting out the market, if possible. This might signify that the market has shifted towards the seller side, and you’ll face rising housing costs.
Keep in mind, you’ll need to factor in current mortgage interest rates to gauge how much you can afford to buy.
If you notice home prices are on the decline and are facing a downward shift, you may have to list your home for a lower value than when the market is trending upward. However, if you price it competitively during this time, you could attract a lot of buyers’ attention and possibly spark a bidding war between your property (further driving up its value) — since buyers will be on the hunt during this shift in the market. Also, note that declining prices may reveal an increase in the housing inventory, giving buyers more homes to choose from.
If you notice home prices are on the rise and are facing an upward shift, now might be a good time to get maximum value for your property. This will typically signify a rise in home values and a time when there aren’t a lot of homes for sale on the market. Buyers will be looking for a house, but they won’t have many choices — persuading them to offer more on a home when they do find one they like.
Inventory Of Homes On The Market
A rising inventory of homes means you’ll have more properties to choose from. Typically, this will drive home prices down, as there is a lot of competition from homes on the market. Overall, it’s a great time to search for a home, as long as the prices match your affordability (as gauged in the Home Pricing Chart).
A declining inventory means there are less homes to choose from, and could make it harder to find the right home that fits your needs. You could face higher home prices as homeowners take advantage of the low inventory (since you won’t have many other homes to choose from). If you can, try to wait out the market until it becomes more favorable to your needs.
A rising inventory means more competition for your home. Buyers will have more choices and won’t feel as pressured to make an offer on your home if it doesn’t fit their lifestyle or budget. To counter this, you might need to price your home at a more competitive level to garner buyer attention.
A declining inventory or low inventory can be to your advantage. Buyers won’t have as many homes to choose from, which could convince them to make higher offers on a home (in fear that another home buyer will make a better offer). As a result, home values typically rise during this time. There’s less competition from other homes, and you’ll receive more attention. It’s usually a good time to sell your home if there is a low inventory and rising home values.
The Market As A Whole
It’s important to note that you should compare both the price values of homes and the inventory level of the real estate market together. Typically, as the inventory decreases, home prices go up. As the inventory increases, home prices decrease. Using both charts will give you a better picture of the national market and lead you to make better decisions.
Also, take note of external factors that could affect the market. As mortgage rates increase, buyers can afford less, while on the flip side, as mortgage rates decrease, they can afford higher-priced homes.
Your local market could see different shifts in the real estate market, which makes it imperative that you talk to a local real estate agent. You can get a local perspective from any of our agents, as they will have a better understanding of the market in your area.