HUNTSVILLE, Ala. (WHNT) — Is this housing market slowing down and heading towards pre-pandemic levels?
The May report from Realtor.com shows signs of ‘yes’, with steep mortgage rates and sky-high prices putting the brakes on home buyers across the country.
“Real estate this year has been a tad bit slower than what we’ve seen in years past,” Anthony Jones, a realtor with Five Star Real Estate Agency, said. “But I do think the market is properly correcting itself, which, you see, oftentimes things ebb and flow.”
The historic housing surge is slowing down, and everyone from buyers to sellers to realtors are feeling the impact.
Daniel Strahan is looking to move to Madison County and is selling his home in Tennessee while looking for a home in North Alabama. He is taking notes of the market’s shift from both perspectives.
“It’s not as hot as it was even at the beginning of this year,” Strahan said. “So it’s definitely mellowing out, and I think that’s partly because of interest rates.”
High interest rates are just one factor that the Associated Press said contributes to the market’s slowdown. It also says high mortgage rates, more sellers than buyers and steep price tags on homes for sale all play a part in the market’s current state.
Redfin, a real estate company, reported that nearly half a million more homes were for sale than buyers on the market in April, which is the largest gap since at least 2013.
“What I’m seeing just from clients and just my own observation is a lot of just economic change,” Jones said. “I think that has been the biggest thing for potential buyers and sellers. You really are having to factor in and think about the future of, you know, the cost of things, and just making sure that it makes sense.”
Real estate agents said while the market is slowing down, the cuts are not as deep here at home.
“Our market is resilient,” Loraine Cordule, the Huntsville Area Association of Realtors Treasurer and real estate agent, said. “Usually, if the national market is a little slow, we’re usually doing a smidge better than them.”
“This area is still very, very fortunate to have a robust job market, a robust kind of, you know, industry where people are still able to thrive,” Jones said. “When you look at even the thought process of people transitioning to this area, there’s been a lot of government changes that have brought people to Huntsville, which I think has helped things drastically.”
As buyers and sellers consider throwing their hat in the ring, Strahan urges them to practice patience to go with the flow of the market.
“Dig as deep as you can within yourself to find every ounce of patience that you can muster, because it’s not going to be what you think it will be,” Strahan said.
The housing market usually sees an increase in sales during the summer months. Real estate agents expect to see those same effects this year.
Strahan and the realtors said the team you have around you makes all the difference, whether you are buying or selling.
To contact Anthony Jones or see his portfolio, visit here.
To contact anyone with HAAR, visit here.
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