Market Activity Is Increasing, But Not as Much as Last Year
The warmer weather has definitely made it feel like spring is in the air. We’re still a couple of weeks away from the official start of Spring, but real estate activity does seem to be on the rise. More deals are happenings this month than last; when they were down about 9% city-wide from the year before, and things feel quite a bit more like a normal market for this time of year. However, while activity is picking up as part of normal seasonality, things are still much slower than the frenetic pace at the start of 2022.
If you look at the Monthly Market Snapshot below, you can see that for-sale (active listings) housing inventory at the end of January was 83% higher than it was at the end of January last year. This is partially because buyer demand is lower due to recession fears, and listings are staying on the market for about twice as long as they were before. Despite this, average home prices were still up 2.5% from the year prior, which is a good sign that they are remaining steady rather than declining quickly as many feared they would.
INFO FOR SELLERS
More Competition Means More Effort
For sellers, this increase in inventory means you’ll face a little more competition this month. Your home needs to be as easy to show and as presentable as possible. If it’s difficult for buyers to schedule a showing, or the house doesn’t show well upon arrival, they’ll have more options to choose from than they did last year. They may simply move on. If you can lock in a solid buyer, now may be a good time to do so before things get even more competitive in peak spring. That’s historically when the most homes are listed for sale. Our current market is very similar to the one we saw in the first few months of 2020, right before Covid struck. That means things are still fairly competitive for buyers, but just not selling at extreme price premiums as they have over the past couple of years. As a seller, you are much more likely to get offers at or just below market value right now than to sell at a premium.
INFO FOR BUYERS
More Options to Choose From
For buyers, things should definitely be more comfortable than they were if you were looking for a home at this time last year. There are roughly 4,600 homes to choose from, which is a number we haven’t seen since just before the pandemic. Inventory is still tight, especially in the entry-level price range, but buyers are a bit less desperate than they were before. If you write an offer that gets rejected, don’t get discouraged. It’s common to place offers on 3 or 4 properties before one gets accepted. Also, keep in mind that if a property checks most of your boxes but needs minor repairs made, you may be able to negotiate seller concessions that you may not have been able to a year ago. It’s still a seller’s market, but you have a bit more working in your favor than you did before.
*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors of omission in the content.
As always, feel free to contact us if you have questions or are interested in making a move.