Following the latest real estate marketing trends can help you promote your business. One of the top trends is the correction that is taking place in the housing market. Find out what Redfin’s chief economist had to say about the trend.
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Redfin reports that the housing market has slowed down after being hotter than usual during the past few years. The company’s homebuyer demand index declined 16 per cent year-on-year, the biggest decrease in the last two years. Even hot markets like Austin are facing a downturn over the past year. What is behind this decline?
rising interest rates
Mortgage interest rates have been on the rise in recent months after being at historic lows. The demand for housing increased among buyers due to low interest rates. However, as interest rates rose near 6 percent, this demand began to decline. Higher interest rates make mortgage payments higher for buyers and limit inventory even more in their price range. Low interest rates also caused many homeowners to refinance. With interest rates on the rise, these homeowners are in no rush to put their home on the market and buy a new one.
listing price decreases
What do these trends mean for sellers? As the housing market continues to cool, sellers are finding that they need to lower their listing prices to attract buyers. Unlike the frenzy of the last two years, buyers are not showing as much interest as competition for high-priced homes. Instead, they’re biding their time, which is causing some sellers to drop their listing prices.
If you are looking for more information on real estate marketing trends, please visit Properties Online. We provide tools that can help real estate agents harness these trends to bring in more business.
