Experts have been for some time saying that the U.S. housing market, as a whole, has been a “seller’s market”. As the name suggests, this is great news for those looking to sell their home, but not so good for those looking to buy. The reason for this is a relative shortage of new and available homes compared to the demand across the country. For buying or selling a home in Salt Lake City, for example, the need for a top-quality realtor has been essential, as the market knowledge provided by companies like CityHome Collective has proven invaluable for buyers looking to make a well-timed and competitive offer.
The reason for this, as you have probably guessed, has been the coronavirus pandemic and the impact it has had on the construction industry. With a shortage of new homes, the existing ones on the market have seen their value increase. Yet recent market trends are now suggesting that the housing market across Utah is set to “normalize”, which is good news not only for buyers, but for the housing market as whole, which is always healthiest when there exists a stable equilibrium between buyer demand and housing availability.
End of the Bidding Wars
Specifically, the bidding wars that were common across the Utah housing market are now no longer as frenzied. And because this is a function of the easing of pandemic restrictions and the new lease of life that has been afforded the construction industry, this seems like a trend that is not only likely to continue for now, but to stabilize thereafter.
Although it has been considered by many sellers as a great period to sell, this Covid-induced imbalance has had its negative effects in the long run, with many buyers becoming fatigued and put off by the competitiveness of the market. Armed with the knowledge that any Covid-related trends within the market cannot go on indefinitely, many buyers have decided to sit tight for now, choosing to return to the fray when things improve.
This has led to an interesting paradox, whereby even though the Covid-related “seller’s market” initially appeared like great news for sellers, it was beginning to have the adverse effect of actually lowering the demand in the long run, with many buyers deciding to simply hold off for now.
The Importance of a Quality Real Estate Brokerage
Yet if there is one thing that this most unusual period in the housing market has highlighted, it is the importance to buyers of a truly professional real estate broker. With the market so competitive, and bidding wars common, the expertise and industry experience of such brokers and estate agents has been essential for making an offer that is not only competitive, but well timed and inclusive also of a buyer’s specific needs as well.
It’s a very tricky balancing act to make an offer that has a chance against the many others that are likely to be made for a specific property without important buyer demands. Throughout the pandemic, the real estate broker’s job has only become more of an essential service.
It is good news that the housing market in Utah is now beginning to stabilize, but it’s important to remember that it is still competitive, with house prices remaining high. This is also good news, as it would only be an imbalance the other way if house prices suddenly collapsed and fewer homeowners were willing to sell.
So onwards into a future of healthily competitive housing markets, it still pays to have an experienced realtor in your corner, whether you’re buying or selling.