Learn more about the impact of market time on property pricing.
The real estate landscape is evolving, and market dynamics are shifting. Today, we’ll dive into the expected market time year over year and explore its impact on property pricing. To provide some context, in 2021, homes typically spent an average of 20 days on the market for the majority of the year.
At the start of 2023, market conditions underwent a significant change, with average market time frames stretching to around 85 days. This shift was primarily driven by rising interest rates, leaving buyers in a state of uncertainty. However, as interest rates became slightly more favorable in February, the market responded, and the average market time fell to a low of about 38 days in April.
Since then, market conditions have continued to evolve. As interest rates gradually increased, affordability became a concern. As a result, the current average market time stands at approximately 59 days. What does this mean for sellers? It underscores the importance of pricing your property strategically.
Gone are the days when you could list your home at any price and expect eager buyers to appear. Today’s buyers are motivated but discerning. While demand remains high due to limited supply, affordability constraints mean that buyers are searching for the perfect match. Overpricing your property can lead to a prolonged listing period, which is less than ideal.
For buyers, the challenge lies in affordability. Prices have surged, and competition remains fierce. However, as homes take longer to sell, there may be opportunities for price adjustments in the future. Yet, predicting the market’s exact trajectory remains a challenge.
The key for buyers is to approach the market strategically. Understanding your financing options and getting preapproved are critical steps. It’s important to work out the math and ensure your budget aligns with your goals.
Every real estate market is unique, and micro-markets have their own subtleties. If you’re considering buying or selling and would like RMG’s expert analysis to guide your decision-making, we’re here to help. Reach out to us for personalized advice tailored to your specific situation.