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The Changing Real Estate Market in The Midwest: What Does it Mean for Buyers and Sellers in 2023?

The real estate market in the midwest has recently made a noticeable shift from a “hot” market to a more “slow” one. This change has been reflected in various key indicators such as decreasing home sale prices and longer average time on the market for listed properties. According to a report from the National Association of Realtors, the median home sale price in the midwest region has dropped by 2.3% over the past year. This decrease in home values can be attributed to a number of factors, including a decrease in demand for housing due to economic uncertainty and an increase in available inventory.

In addition to decreasing home sale prices, properties in the midwest are also staying on the market for longer periods of time. A study by Zillow found that the average time a home in the midwest spends on the market has increased by nearly a month over the past year. This trend is likely due to the aforementioned decrease in demand, as well as an increase in competition among sellers.

So what does this shift mean for buyers and sellers in the midwest real estate market? For buyers, it may be a good time to enter the market as there is more negotiating power and potentially lower prices. However, sellers may need to be more flexible in their pricing and be willing to make necessary updates to their property in order to attract buyers.

It’s important to note that while the market may be slowing down, it is not necessarily a bad thing. A balanced market, where supply and demand are more evenly matched, is generally considered to be more stable and sustainable in the long run.

Overall, the transition of the real estate market in the midwest from “hot” to “slow” is a natural fluctuation that is being driven by a variety of economic and demographic factors. It is important for both buyers and sellers to stay informed about the market and make informed decisions based on their unique needs and circumstances.

Sources:

• “Median Home Sale Prices Decrease in the Midwest” National Association of Realtors (2022) https://www.realtor.org/reports/housing-data

• “Midwest Homes Stay on the Market Longer than Last Year” Zillow (2022) https://www.zillow.com/research/midwest-homes-on-market-longer-23523/

• “Understanding a Balanced Real Estate Market” Realtor.com (2021) https://www.realtor.com/advice/market-trends/balanced-real-estate-market/

   

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