Dude, Where's My Market?

Over the past couple years the real estate market has felt like a bit of a rollercoaster ride.  And over the past year, many agents and economists have been talking about a whole market shift, but are we really seeing a full shift in the market?

The short answer is no.  Based on what is occurring, we are just experiencing a sort of blip in the market.  We are experiencing a small moment of change, largely due to the inflated interest rates.  But to call this a shift is overkill, more so realistically would be better described as a “contracting marketing”.  Let's dive in:

First off, there are still more buyers than sellers in the market.  And that has been the case for the past few years.

However, when economists see days on market increasing, as much as 100%, I see why they thought we were seeing a shift.  Buuuuuuut….for better context 100% increase of days on market from 1-5 days to 10-15 days on market is not a massive change.  In fact, that is still faster than the average home sale in a stable market. 

Next we would look at what prices are doing.  While we are starting to see some properties receive less than asking price, that is not the case across the board.  Just like in any market, if the home shows well and is marketed properly, it will sell, and it will sell for top dollar.  In fact, we are seeing multiple offers and increased sale prices consistently.  The homes that aren’t getting top dollar are those that are overpriced.

One advantage in the market that we are seeing for buyers, is that even with multiple offers, we are seeing more contingencies and concessions being negotiated in the buyers favor.

If things continue in the way they are, once interest rates lower to a more affordable amount, I suspect we will see another flood of buyers hitting the market.  Which means, prices will continue to grow.