Today's Real Estate: What the Headlines May Be Missing

More than once in recent weeks, I was told the market is in a downturn. “Haven’t you seen the headlines?” Of course, I keep up with current news, but wanted to see exactly what they were reading. I combed through the various articles and realized the issue: the data used was not current enough to reflect today’s activity! The reports will catch up soon enough. In the meantime, let’s break this down.

Pending Homes: One headline I read stated that pending sales decreased 31.7%. This surprised me. John and I have felt a much busier market than that! Turns out, that decrease reflects a year over year comparison from Feb 2022 to Feb 2023. A more relevant and encouraging stat to focus on is this: the number of pending homes since January 2023 has doubled!

Another indicator that the market is strong, is buyer activity. According to ShowingTime, we saw a 62% jump in showings from December to January. This is one of the largest jumps on record! There were also more showings in January than in any other month since May 2022.

Multiple Offers! Yes, these are back and in full force. Expect these in all price points, all areas, all styles of homes. You likely have heard examples of this already. Recently, we submitted an offer on day one and were one of thirteen offers presented. Another client was one of four offers. We will see much more of this as the Spring market continues.

Which leads me to pricing. There are a few pricing strategies going on right now. That is the case in any market. But in the Spring especially, sellers will test what buyers may spend. It has already become clear which sellers are posting dream prices and which ones are priced well (Clue: Look for the SOLD sign).

Interest Rates. Asking what the feds will do next is a question we are asked daily. Speculation on if, when and by how much the feds’ actions will affect mortgage interest rates is front of mind for our buyers and sellers. I don’t have a crystal ball to know what rates will do now, in two months or throughout the year. I can say that buyers and sellers are figuring it out and finding the programs, rates, incentives, etc. that work best for them. That is, if they get a mortgage. Some buyers are paying cash (latest estimate about 28% of the market).

We can help you understand the market, learn from our experiences, and work through any challenges or questions. But only you can decide if now is the best time for YOU. If it is, hurdles in today’s market can be overcome.

I will leave you with inspiration from a client’s young nephew. He had just come from breakfast with his uncle. Apparently, there was a longer wait than usual. I asked if it was worth it? With a big smile and blueberry syrup on his shirt the nephew exclaimed “Yes! Best pancakes EVER!!!”