Market Update
It has been a ride these last 4 months...
We are here to tell you that the real estate market is constantly changing. As interest rates fluctuate, seasons change, and economic conditions shift, keep yourself educated on what is happening in the housing market. Homes are often a considerable source of wealth in the United States, and new home construction provides widespread employment.
What is happening in the Real Estate Market?
We have seen homes selling below list price on average since about October. This was in response to what was happening with interest rates. Not only did homes close below list price, but sellers were also offering concessions to help buyers buy down the interest rates and pay for closing costs. Essentially home sellers did this to keep the home affordable during this time.
Next, it is important to confirm that we are still in a seller’s market. We are low on inventory. There is only a month and a half of inventory on hand. This means that if not one other home was put on the market in the next month and a half, we would run out of homes for searching buyers. A balanced market is 5-6 months. The recession market was 11 months. So, it is still, a seller’s market which I think is crucial to point out.
Mortgage rates are the lowest they have been in the last 4 months and mortgage applications are up 28%. We definitely saw that in the buyer activity over the last few weeks. Increased showings, multiple offers, and offer deadlines are back in some circumstances. That means right now home listings are in price competition and a beauty contest. Buyers are looking for what is the best deal and what is showing the best online. These homes are getting more activity.
Buying a home?
Our best advice is to work with a local expert. This is a real estate agent who knows that community well and can compare prices of homes that have sold nearby. This is also known as A comparative market analysis (CMA). By doing this they will give your offer a competitive advantage over a possible multi-offer scenario.
Selling your home?
Our best advice is to work with an real estate agent who is going to market your home, with sparkles, online to draw that attention in. Providing buyers with what they are searching for will generate more showings, better offers, and more money in your pocket. Your agent will also help you properly list your home so that even if it is marketed great online, it won’t miss potential buyers because it is overpriced.
Finally Thoughts
We don’t expect the same appreciation that we have seen over the last 2 years (sometimes over 20% appreciation in certain communities). However, we do still expect it to be a seller’s market, a stable market, but with more buyer-friendly terms. Less competition and more ability for buyers to make thoughtful decisions this year.
If you have any questions about the real estate market please email us or send us a DM on Instagram.
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