Several key metrics for the market support the easing of upward pricing pressures. INVENTORY
Inventory has grown from a low of fewer than 1,800 active homes for sale in March/April to now over 2,000 on the market currently. This trend is visible across all five counties. So, while underlying demand is still present, this increase in supply supports some pricing relief for buyers.
SOLD PRICE VS. LIST PRICE On average, the sold price is drifting further below the listed price in our market. This means fewer homes are selling for full asking. A lot still are, but the data is showing a trend has emerged. The average in August was about 96%. There were periods in 2021 and 2022 where the average was above 100%. A decrease of 4%
does not seem significant, but it actually is and shows a shifting in the market. This supports lower market pricing and suggests buyers have a little more leverage. PRICE DECREASES FOR ACTIVE LISTINGS
The average daily number of active listings with price adjustments remains high. 28 – 30+ properties on the market are reducing price every day.
This might be an indication of some over-reach by sellers with pricing. In attempt to continue to ride this wave of increasing prices, some sellers may be stretching a bit too far and buyers are pulling back in response.
- If rates continue to rise, buyers would be better off buying now and capturing the lower rate. - If rates stay the same, buyers would be better off buying now and paying into the equity of their property. - If rates start to reduce, buyers would be better off buying now and avoiding the increased demand as more buyers enter back into the market further driving up prices. And if rates drop enough, buyers can then refinance. Even though we have seen some softening in pricing and increase in inventory, buyers continue to face challenges in this market when considering the current interest rates and general affordability due to the all-to-real effects of inflation that we see every day around us. However, I think there is still an argument to be made to push ahead with buying now with respect to interest rates…
Thanks for reading this month's Market Insights. As always, my inbox is open for questions! Any real estate market question is welcome - Reach me at 443-614-4327 or email me Ryan.payneteam@gmail.com
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