How the housing market changes affect both buyers and sellers.
Are you wondering about the condition of the housing market? If you’re going to analyze the state of the market, you should look at three things: inventory, interest rates, and days on market.
Inventory has changed a lot throughout this year. In January, we had just over 1,000 homes available for sale. At the peak of this year, which was August, there were 4,000! That is a big jump. Currently, there are 3,650 homes available, so still a lot.
In January, interest rates were between 3% and 3.25%. Today they’re between 7% and 7.5%. This rise in interest rates has created a decrease in affordability. Also, in January, homes were selling in less than a week. Today, homes are taking two to four months to sell, depending on the price point and the strategy. Therefore, all three of those indicators show how much the market has changed with the decrease in demand and increase in supply.
Then what should people do about that? A couple of my suggestions for buyers would be to check their motivation and look at financing options. Rates are high, but there are still a lot of pros for buyers in this market. Lenders can use creative financing, there are more homes for sale, there’s more time to make a thoughtful decision, prices can be negotiated again, terms are more favorable, and rates can be bought down.
For sellers to thrive in this market, you should check your motivation, hire a professional, price your home correctly, prepare your home well, keep an open mind, and use your proceeds wisely.
I truly believe that both buyers and sellers can do well in this current market. If you have any questions or want help with your specific situation, don’t hesitate to reach out! You can call or email me anytime; I’d love to hear from you.