As we step into the cooler months, the real estate market is showing signs of a shift. With days on market creeping up, sales prices dipping, and months' supply on the rise, many are asking: Are we heading toward a crash?

Days on Market Are Up

Homes are sitting longer before going under contract, which can be a signal that buyers are taking their time or being more cautious due to interest rates. This trend could indicate a cooling in the market, but it also gives buyers a bit more negotiating power. Sellers, however, may need to adjust their expectations for quick sales.

Sales Prices Are Down

While we're not seeing drastic price drops, it's clear that prices have softened compared to the highs of earlier this year. This could be attributed to buyers pulling back as affordability becomes a growing concern. However, don’t mistake this for a market collapse—it’s more of a market correction as sellers price their homes more competitively.

Months' Supply Is Up

The months' supply is a key indicator of market balance, and it's been increasing. This means more homes are available relative to the number of buyers. However, it’s important to remember that we are still far from a “buyer’s market.” A balanced market typically has around 5-6 months of inventory, and while we're inching closer to that, we’re not quite there yet.

So, Are We Heading Toward a Crash?

While the headlines might make it seem like a crash is imminent, the numbers suggest otherwise. What we’re seeing is more of a market correction rather than a full-blown crash. The market is cooling, but this is a far cry from the housing crisis of 2008. This adjustment may even help create more opportunities for buyers who’ve been waiting on the sidelines.

If you're considering buying or selling, now is the time to strategize carefully. Sellers may need to be more realistic with their pricing, while buyers should take advantage of the slightly less competitive environment before interest rates or prices spike again.

Curious about how this market affects your home value or buying power? Reach out for a personalized consultation!