Is the Market Beginning to Shift?
Many industry leaders believe the market shift has begun. Realtor.com
® recently reported the following:
“July housing data release reveals signs of a positive change in the market for homebuyers. Median listing prices are continuing to cool, driven by an increase in lower-priced homes in many metros. New sellers are beginning to enter the market at close to normal levels and while their property values remain elevated, they may have to consider pricing more competitively in the near future.“
Locally, the indicators I am watching are:
1. Days on the market which is leveling off if not increasing slightly.
2. Sale price to list price ratio, which is still very high at 101%.
3. Number of price reductions, which I can only report anecdotally are much more common these days in the markets I am following.
4. New listing inventory, which is up only slightly.
What can we Expect this Fall?
According to Forbes Advisor, the market should cool somewhat.
Ralph B. McLaughlin, chief economist and senior vice president of analytics at Haus, Inc., says that demand will go back to its usual cooling-off period in the fall, noting the recent expansion of inventory and retreating home prices.
“I think it’s absolutely likely that price growth will slow throughout the end of the year, as they’re already slowing from their peak in June,” McLaughlin says. “We expect price growth to moderate to the mid-high single digits by December.”
However, McLaughlin added that he doesn’t expect inventory to recover fully until next spring.
It is not time for sellers to panic, but if you really want to sell then be priced right this fall. And if you are a buyer, be patient but don’t expect deals and if you see something you really like – buy it while rates are still at historic levels.