Slight market shift, but sellers remain on top

While demand for homes has begun to ease, drastic changes in prices are unlikely as long as the supply side of the equation remains constrained.

For several months, the residential real estate market has experienced a significant imbalance in the supply and demand of homes throughout the nation.

Particularly, the Southwest Florida real estate market has seen an almost insatiable demand from relocating buyers competing for an increasingly limited supply of available homes for sale. For the first time since the pandemic began, we are witnessing a noticeable change in the demand side of the equation.

Let me be clear, this decrease in demand is not a reason for panic or even a suggestion that we are shifting from a seller’s market to a buyer’s market. What we have experienced to date is the shift from a “white hot” seller’s market to a “strong” seller’s market. The supply of homes is still historically low with no significant improvement on the horizon. The lack of available homes for sale, coupled with the erosion of purchasing power due to higher interest rates, is beginning to have an effect on the total number of home sales in the market.

Leave a Reply

Your email address will not be published. Required fields are marked *