3 Things Sellers Need to Know About Today's Housing Market

If you're listing a home, it's important to have a pulse on the market.

Earlier this year, sellers had a very distinct upper hand in the real estate market. Not only were home prices sky-high, but housing inventory was so limited that buyers were bending over backwards to get their offers accepted.

These days, the housing market still favors sellers considerably. But things aren't as hot as they were at the start of 2022. And so if you're looking to sell a home in the near term, here are some key points to keep in mind.

1. Housing inventory is picking up

At the start of the year, there were only 860,000 available homes for sale, according to the National Association of Realtors. In July, there were 1.31 million.

Now that real estate inventory is picking up, buyers are getting more choices. And that means we're less likely to see rampant bidding wars during the latter part of 2022. That's good news for buyers -- but for sellers, less so.

Because housing inventory is increasing, as a seller, you'll need to be really careful with the way you price and market your home. Buyers may not be as willing to overpay for a home as they were earlier in the year. If your home has obvious flaws, like floors that have seen better days, buyers might pass on your property in favor of one in better shape. So in addition to strategic pricing and marketing, you'll want to address at least the cosmetic issues with your property before putting your home on the market.

2. Home price gains are slowing

Home sellers are still walking away with nice profits in today's market. But home price gains are slowing.

In June, home prices saw an 18% year-over-year gain on a national level, as per the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. But that's a smaller gain than May's 19.9%. As such, if you're going to list your home, you may need to keep your expectations in check. You might end up with a generous offer -- but you may not get away with the same sort of prices your neighbors who sold earlier in the year got away with.

3. Higher mortgage rates may be driving some buyers out of the market

Mortgage rates have risen sharply this year. That means it's more expensive to finance a home with a mortgage loan. That's apt to push more buyers out of the market in the coming months. And fewer buyers means you may need to work harder to score a quick sale.

That said, if you hire a seasoned real estate professional, they can help you market your home and appeal to buyers, even if you're dealing with a smaller pool of them. An agent can also help you price your home accordingly so you're able to attract buyers without short-changing yourself.

The housing market is evolving, and all signs seem to indicate that it's changing in buyers' favor. If you're looking to sell your home, keep these points in mind and use them to help inform your decisions and strategy.