Here are a few considerations:

Buyers and sellers alike may be confused about the current real estate market, especially about mortgage rates, inventory and whether it is a good time to buy or sell!

The bottom line? The best time to buy or sell is going to be contingent on a lot of factors, including your financial situation, inventory in your neighborhood and current mortgage rates.

Somethings to consider:

Homes are seeing price cuts

While home prices continue to grow, albeit slower than a year ago, Realtor.com has observed that there has been an increase in price reductions among sellers.

“Roughly 1 in 7 homes in June had a price reduction, up from roughly 1 in 13 in June 2021, but still below the 1 out of every 4 to 5 that was typical in 2017 through 2019. In short, the national market is resetting and the local area where you’re trying to buy may be on the leading or lagging edge of these trends,” says Danielle Hale, chief economist at Realtor.com.

Inventory of homes available has increased

While inventory still has not quite reached buyer demand, it has improved since last year. Hale says that inventory levels are returning relative to what was normal pre-pandemic.

Inventory rose 18.7% over this time last year, meaning more homes are on the market for you to find your dream home!

Keep track of your local neighborhoods

Keep an eye out in the neighborhood you want to purchase in, and/or the one you want to sell in. Depending on local conditions, the local real estate market may shift to your favor before the rest of the market catches up. (Even more reason to find a real estate agent that knows your local neighbor like the back of their hand!)

“The local area where you’re trying to buy could be more or less buyer-friendly than the national data indicates,” says Hale.

Be prepared!

We repeat this repeatedly because it is an important step. Be prepared by having your finances in order so you are ready to buy or sell when the opportunity strikes.

Especially with higher mortgage rates and changes in affordability, take some time to figure out how much you can afford.

“Before you start shopping, take a hard look at your budget and figure out that you’re comfortable spending on housing each month. Mortgage calculators and lenders will advise you based on financial rules of thumb that suggest you should spend no more than 28% of your income on housing payments and no more than 36% to 50% on total debt payments, including housing, student loans and car loans,” says Hale.