The economic and market indicators are a bit all over the place and the opinions are equally so. The overarching takeaway…which is the only thing anybody really wants to know, is that the market is doing well and improving…and note, this is for both buyers and sellers. Why? Well, there are innumerable, objective and subjective, data points which cumulatively demonstrate this. We’ve had below than average market activity for nearly 30 months now. Since interest rates began to spike in the Spring of 2022 we have experienced a complete reset, which you can see in the two charts below. You can see precisely when, in that Spring of 2022, the volume ratcheted down and how it has essentially stayed in that range.
Yes, we have wavered up and down with typical market seasonality, but we have not seen enormous swings in deal volume OR price. Unlike many parts of the country, we have had tremendous market stability pricewise. This is indicative of a solid foundation where both buyers and sellers are actually experiencing equilibrium. There’s opportunity on both sides, as long as each strategize according to their specific goals.
Sellers must price correctly, as there is a severe discount for missing your market. When priced right properties sell efficiently. See the chart below which reveals the penalty for missing your mark.
If you price right and sell under 60 days the discount to your asking price is mild; but as those “days on the market” grow, the discount gets severe, upwards of 10%. So, you have to price right or you’ll miss your market. Think about it, your price is your invitation to buyers; if you invite the wrong people, the wrong people will come. Also, if you overprice, you’re inviting buyers who are looking at more expensive properties…BETTER properties than yours. Meaning, yours will be the worst one they see; I’m not sure that’s what you want. So, price right; get in and get out…get it done. Executing this task efficiently will yield you the best results.
Buyers should consider the moment; as rates slowly ease, the market will become increasingly competitive. The liquidity pace chart above also shows the upward pressure on prices. At the moment, inventory is fair (6,700+ listings on pace of activity is 33.8% higher than last year at this time. This is bound to put the market for sale); buyer demand is solid, but not frenzied and prices are stable…they’ve not tumbled, nor have they spiked. Buyers usually try to time the market when they are typically better served by focusing on spending time in the market. Here, as long as your time horizon is 5-7 years, jumping in sooner rather than later generally yields the best return.
I always say: 1) Anyone interested in buying or selling, should be rolling up their sleeves to determine whether the time is right to sell or if there’s a home/investment property out there for them; and 2) Who represents you matters…your best investment is often in the broker you choose; find someone with experience, who you feel you can trust.
