The state of the American real estate market is an interesting one. The market has been shattering records since the COVID pandemic decline, with inventory incredibly low while buyer interest remains incredibly high. The summer months are typically some of the most frenzied for the real estate market as buyer activity is typically the highest in the warm weather. September marks the end of the summer season and potentially a change in market conditions.
For the market to return to buyer’s best conditions , there needs to be significant growth in the amount of inventory on the market. According to Yahoo Finance, one change occurred at the end of September that could see the amount of inventory on the market shoot back up to more palatable levels: the end of the mortgage forbearance program.
This COVID measure had 1.7 million Americans enrolled in it, and unfortunately, not all of them will be able to afford the return of their mortgage payments. Many will sell their homes and downgrade or move to cheaper areas. This will significantly increase inventory. According to the same report by Yahoo, there are currently only 1.3 million homes on the market, so this will have a marked impact over the next few months.
September was a month that saw many of the trends that had long been occurring continue and even escalate. However, as the end of a typically frenzied summer real estate season is marked, significant changes could be on the horizon. With the slow but steady increase of inventory increase of 2021 combined with the end of the mortgage forbearance program, market conditions may be on the verge of shifting. After a long period of a seller’s market, buyers could potentially have their time.