Are We in a Housing Market Shift?

A housing market shift is happening. How do I know? Recent market data doesn’t clearly show it yet, as the numbers show that homes are still selling above list price and the average and median sales prices are up double-digit percent points from last year at this time. We are also in the summer season when many people take a break from their real estate goals, so that does factor in to some degree. However, there are other indicators that are starting to trend upward which are signaling a shift. First more listings are doing price reductions. In fact, there have been 72 in the last 2 weeks in my local market. Further, even builders are now doing price reductions on some of their inventory instead of the usual incremental price increases. Secondly, the days on market metric is increasing, meaning more homes are staying on the market longer before going under contract. This is in contrast to the trend earlier this year when homes would go under contract within the first weekend. Because homes aren’t selling as fast, inventory is increasing. Another indicator is that only the best, move-in-ready homes are getting multiple offers and selling over list price. Even with that, they are only getting 2 or 3 offers instead of 10 or more. This is an indication that buyer demand, while still strong, is waning. In this episode I’ll explore what is causing this shift and what strategies buyers and sellers can employ to be successful in this changing market. Check out my Google Business Profile for location and contact information. Regards, Sean