History Shows the Housing Market Always Recovers

As the housing market slows, many homeowners are pulling their homes off the market after not receiving their desired prices. Realtor.com reports that the number of homes taken off the market has increased by 38% since the start of this year and 48% since last June. In June, about 21 out of every 100 new listings were withdrawn. If you’ve made this choice, it’s understandable to feel frustrated. However, it’s crucial to remember that historical slowdowns do not last forever. 

 Historical Proof of Recovery: The housing market has seen downturns before:  

- 1980s: Mortgage rates soared past 18%, halting buyer activity. Once rates fell, sales rebounded. 

 - 2008: The Great Financial Crisis caused a significant decline in sales and prices, but the market recovered with the economy.  

- 2020: COVID-19 caused sales to drop dramatically. However, once restrictions eased, buyers returned faster than expected.  

The lesson is clear: the market always rebounds.  

Current Situation  

Recently, home sales have been sluggish, largely due to affordability issues from rising mortgage rates and climbing home prices.  

However, forecasts predict an increase in sales by 2026. Last year, around 4 million homes were sold, and similar numbers are expected this year. Experts anticipate that around 4.6 million homes will sell in 2026, primarily due to a projected decrease in mortgage rates, which will encourage more buyers.  

This slowdown is part of a cycle we’ve seen repeatedly, and just like in past downturns, today’s dip in home sales will be temporary.  

What This Means for You  

If you’ve paused your moving plans, you made a reasonable decision. Your frustration is valid, but it’s important to keep the bigger picture in mind: slowdowns do end. I’m here to monitor the market for you. When the signs of recovery appear, I can help you relist your home with confidence.  

Bottom Line  

If the current housing market feels stagnant, remember that slowdowns are temporary. Let’s connect; when buyer activity picks up, you’ll want to be ready.  

Are you prepared to put your house back on the market, or do you need to move sooner? Give me a call and we will figure out your options! 719-240-9055