The current market has seen a bit of a decline in the past couple of weeks. Homeowners and potential home buyers are leary with the price declines. Many potential sellers are thinking twice before listing due to the housing market downturn and rise in mortgage rates. If the market is softening, does this mean it is not a good time to sell? 
The housing market in 2022 was not the same as the housing market in 2021. In 2021 the U.S. real estate market saw a 20% increase in home prices which was a record-breaking year while the housing market in 2022 saw a decline in home price growth. According to Redfin, for the first time since March 2021 homes in 2022 sold for less than asking price.
Although this looks like a downfall for a seller, this is not always the case. Home prices can rise and fall in a short period of time, but a home’s value is a different story. The value will change but it takes a longer period and is slower to change. This means that a home’s value is more stable over time. There are defining factors which include the size, type, condition and location of the home.
This can be seen through the history of the housing market over the past several years. The market shot up fast after the COVID shutdowns that happened in 2020. A mass fury of buyers coupled with a lack of inventory caused a rush in the market in 2021. In 2022 there was a decline due to the U.S. economy slowing down, the rising living cost, inflation and the spike in mortgage interest rates.
It was not that bad in 2022 as home sales went down in 2022, but only 0.9% compared to the average volumes over the past eight years. Home demand luckily is still strong which will keep home values high for a while. Your home value will not decrease anytime soon, but you might need to adjust the listing price. Homes should not sell below market value this year so a seller will still profit from the sale of their home due to the rising home values.
