Housing Market is Rebalancing, Says RE/MAX President and CEO

As the winter rolls along, one thing is clear when it comes to the U.S. housing market: a calming is well underway. According to the latest RE/MAX National Housing Report for December 2022, home sales were down 38% from the same time one year prior, while the number of homes for sale was up 69%.

Coupled together, slower movement and greater inventory are creating opportunity for buyers. This sentiment was shared by RE/MAX President and CEO Nick Bailey during a recent Cheddar News broadcast focused on market change and consumer demand.

Watch the news segment below:

“What we’re really seeing is a rebalance,” Bailey said. “We had one of the most extreme seller’s markets that we’ve had ever in our history, and it included over 125 consecutive months of run-up in pricing.”

He points to the latest fluctuations in interest rates, generally higher than those of recent years, as a catalyst slowing market activity. The appeal of homeownership, Bailey clarifies, is as strong as ever. While info on a local housing market is valuable, he believes it’s not the primary factor in most transactions.

“I think for most people, if you’re considering buying and selling, real estate is about timing – but it’s not via the headlines and what people think,” Bailey shared. “It’s really about the timing for the individual. 95% of people that purchase a home do so because of a life event. They get married, have children, get divorced, or move for a job or to care for a family member. Those are the things that really drive homeownership.

“Regardless of inflation, people buy and sell houses every year.”

Right now, a rebalancing of the U.S. housing market is happening in some locales more than others.

“Part of what’s happening in some of these markets is absolutely showing that we’re not even quite rebalanced yet – we’re still in the process,” Bailey said. “In the Northeast, the number of new listings is up year-over-year by around 45%.

Diving into data tracked by the RE/MAX National Housing Report, Bailey noted that Dover, Delaware had the biggest increase in new listings year-over-year among the 51 metro areas surveyed – followed by Nashville, Tennessee; Philadelphia, Pennsylvania; Washington, D.C.; and Trenton, New Jersey. He also noted that prices in some markets, especially in Florida and the Carolinas, are still increasing, according to recent National Association of REALTORS® data.

He added, “Demand is still out there.”

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