A Return to Normalcy?—Housing Fluctuations Reveal a Stronger Seasonal Market

The COVID-19 pandemic ushered in big changes for the U.S. housing market and upended typical seasonal patterns that served as a baseline for measuring annual housing data. In a summer homebuying season marked by soaring interest rates, slow home sales, and waning inventory, experts say the market hasn’t gotten back on track just yet, but according to MarketWatch, a more traditional seasonal path may be within reach.

Home prices are typically at their lowest at the start of the year and climb steadily throughout the summer months before falling gently in late autumn and into the winter, and while that hasn’t been the case for the last several years, the 2023 housing market is seeing a more standard trajectory of home price growth. In addition, sales trends are normalizing as buyers get used to higher interest rates and continue to compete for available homes on the market, even at today’s inflated sales prices.

Though demand for homes has cooled compared with the first two years of the pandemic, it has remained relatively strong despite higher rates. This sustained demand paired with a limited supply strengthens the case for continued competition and the likelihood you’ll be successful if you choose to sell your home. While you likely will pay more for your mortgage in the form of higher interest this time around, the equity you have in your current home means you could also make a larger down payment than you may have last time. 

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