Our latest market update shows that it isn’t exactly the best time for you buyers out there.
Today we’ll be taking a look at the market changes we’ve seen.
Recent sales were interesting from a statistical standpoint. Inventory is still higher than last year with a 30% to 35% increase. However, there was a slight reduction from previously.
The number of sales has increased; we’re seeing some acceleration at a time of year when things are usually slowing down. It seems people who were out of the market are taking advantage of the slowdown and jumping back in. We’ve seen home pricing hold and stay fairly steady. You’ll soon be hearing from the Association of Realtors that median prices have fallen substantially, with some areas seeing a 4% to 5% decrease in a single month. However, the mean pricing has held up well. If the median is dropping and the mean is staying the same, it shows we’re selling more higher-priced homes and fewer entry-level homes.
This is because interest rates are up. Cheaper homes are geared toward younger buyers who have less to put down and rising rates have really hurt this part of the market. Expect this to continue.
Sellers really need to prepare homes with minor renovations such as paint and carpet. Buyers have no extra money to do repairs like this after purchasing, so make sure they’re happy with what they see. It’s very important to showcase your home well.
If you’re a buyer waiting for the bubble to pop, it’s not going to. People have too much equity in their houses and demand is low. Sellers who really have to move are having to come down by 3% to 4% to get buyers excited. However, there are too many buyers and these homes are grabbed immediately. You won’t find 15% to 20% drops in this market. Although, if you’re patient and willing to take a less-than-perfect home, you can get a great deal. Sellers who didn’t go all out to showcase their homes are getting a little desperate because nobody’s interested. Buyers can take advantage of this, especially before the holiday season hits.
If you need help buying or selling a home, have any questions, or would like some further information, feel free to reach out to me. I look forward to hearing from you.