The real estate market is a dynamic and ever-changing industry, and it's crucial to be well-informed about its current state if you're considering buying or selling a property. In this blog post, we will examine key market indicators without relying on a conversational style.
Inventory: The inventory of homes available for sale plays a significant role in determining the state of the market. As of September, our market had approximately 3 months of inventory. In real estate, less than 5 months of inventory is considered a seller's market, while more than 7 months is a buyer's market. A balanced market typically falls in the range of 5 to 7 months. Despite being technically a seller's market, the buyer pool has decreased due to lower interest rates, making it an opportune time for buyers.
Average Price: The average home price experienced an increase, rising from $398,000 in January to its peak in June. However, it saw a slight decline to $387,000 by September. This decrease offers a more favorable climate for buyers, although sellers may not have the flexibility to raise prices as before.
Days on Market: Days on market (DOM) reflect the time a property is listed before going under contract. The market experienced an increase in DOM, peaking at 30 days at the beginning of 2023. There was a steady decrease to 11 days by July, followed by a slight increase to 15 days in September. This trend suggests heightened activity during the summer months, tapering off as we head into fall and winter.
Shows to Pending: This metric indicates how many showings are required before a property receives an offer and goes under contract. Presently, it stands at 8 showings, varying between 8 and 11 throughout the year.
Percent of List Price: The percentage of the list price that homes actually sell for is a crucial factor. It dipped slightly in the previous year but returned to 100% in March of the current year. This implies that, on average, properties are still selling for their listing price.
Implications for Buyers and Sellers:
For Sellers: To succeed in the current market, sellers should ensure their homes are well-prepared for sale and strategically priced. While there are fewer buyers, the good news is that, on average, properties are still closing at their list price. The only potential challenge is that it might take a bit longer to secure a contract.
For Buyers: Despite the market technically being a seller's market with low inventory, the smaller buyer pool means less competition for homes. This can provide buyers with the opportunity to negotiate discounts or have the seller cover additional closing costs, which can be advantageous in terms of buying down the interest rate.
In summary, the real estate market is currently offering unique opportunities for both buyers and sellers. Staying well-informed and working with a knowledgeable agent is essential to capitalize on these opportunities and navigate the ever-changing landscape of the real estate market.
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