Factors that make the current real estate market unique

Realtors and real estate agents have helped millions of people find homes over the years. Such real estate professionals wear many hats, not only helping people buy and sell homes, but also serving as sounding boards and calming influences when unforeseen, and sometimes frustrating, issues arise during the process of buying and selling a home.

The value of working with a trusted real estate professional is even greater in a fast-paced market when offers must be made, and are often accepted, quickly. In such situations, an experienced professional can advocate for their clients, offer advice and even ease concerns buyers and sellers may have about a given transaction. Such scenarios have played out countless times in recent years, which has been a particularly unique period in real estate. Numerous variables have combined to make the real estate market more challenging in recent years, and those factors underscore how valuable it can be for buyers and sellers to have an experienced professional in their corner.

• Low inventory: Low inventory is among the more noticeable characteristics of the current real estate market. Though inventory has increased since January 2022, when the National Association of Realtors reported that the supply of homes for sale represented a supply of just 1.6 months, marking a record low, it remained low enough at the start of 2024 (around 3.5 months) for industry professionals to characterize the market as unbalanced. According to the online financial resource Bankrate, a five- or six-month supply of homes is usually needed to declare a balanced market. Projections indicate an anticipated increase in single-family home construction, which should lead to greater inventory in the coming months and years.

• High prices: Data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development indicates the median sales prices of houses sold in the United States in the fourth quarter of 2022 was $479,500. In Canada, the median sale price for a home in 2022 was a little more than $522,000 (nearly $704,00 in Canadian dollars). Median sales prices dropped considerably in 2023 (the average sale price in the third quarter of 2023 in the U.S. was $431,000), but buyers can still expect to pay considerably more for a home in 2024 than they likely would have in the first quarter of 2019, when median sales prices were $313,000 in the U.S.

• Quick-moving: A home is the most expensive purchase many people will ever make, which undoubtedly adds a little stress to the process of buying a home. That stress may be exacerbated by how quickly homes are selling in the current market. Estimates vary depending on the source, but the NAR reported that homes sold in October 2023 spent an average of just 23 days on the market. By comparison, the online real estate listing service Zillow notes the average number of days a home spent on the market, including closing time, was 140 days in 2010.

Low inventory, high prices and quick-moving properties are characteristics of the current real estate market. Working with a trusted real estate professional can help both buyers and sellers navigate those variables more efficiently and effectively.