Can the market keep up its pace in the seller’s favor and will this cause a crash like 2008? I continue to get these questions over and over from people and the bottom line is no one has the answers, but what I can do is let you know what is happening in our market right now. Many homes that we are selling here in Houston, Cypress and Katy, Texas are going above list price and with multiple offers.
But why, why does this keep happening? Well, let’s dive into it. Hi, I’m Natasha Carroll here with Natasha Carroll Realty. What we do know is that just as predicted from real estate experts and advisors earlier in the year that we would have a V-shaped recovery, which means that the market drastically dropped and slowed down when the pandemic hit.
But they predicted that once things go back to normal or once our normal set in that the housing market would recover. As seen here from this graph from the Housing Market Index, we see that it has, this index looks at four components of the market. Number one is demand. Number two is supply. Number three is price. And number four is time on market. The index has shown that we’re now exceeding levels prior to the pandemic. Data from the Mortgage Bankers Association, Zillow the National Association of Realtors shows that the leading indicators that determine a strong market like showing times, purchasing applications, pending sales, existing home sales, new home sales are all up, indicating we are in a very strong market.
Also factors like inventory levels for both traditional inventory and new construction are down. We have limited inventory, which again is an indication of a strong market in the favor of sellers. So although I can not predict what will happen in the future, just as anyone else can’t, what I do know is right now, we are seeing a very strong real estate market. Feel free to reach out to us at no cost or risks for a hassle-free strategy session. I’m looking forward to hearing from you and as always, Natasha Carroll here. Have an awesome home buying and selling day.