The pandemic hit the world, leading to lower mortgage rates and a greater desire for people to have their own space. As a result, we all rushed to buy properties, causing one of the tightest property markets of recent years.
A recent Zillow survey showed that 75% of recent housing market buyers regretted their decision to purchase a property during the pandemic. Why? The top reasons were buyers felt they didn’t have enough time to weigh up their priorities and options.
Many people chose to buy houses during the pandemic means these people are no longer searching for properties. As a result, surely there will be a lower number of people searching for homes, meaning demand will return to a typical point, and prices will either stabilize or drop?
You might assume that people regretting the homes they now own will mean that these buyers will be keen to get out and search for a property they won’t regret. Yet it seems that isn’t the case for a straightforward reason here: Burnout.
It would be foolish to talk about real estate conditions and the possibility of falling prices without discussing what’s currently happening right now. Mortgage rates are rising, the cost of living is also increasing, and uncertainty is growing — all of this means that conditions are no longer so great for buying a house.