Hey, Charlotte, its been a good run. But it may be time we brace ourselves for a market shift.
“MARKET SHIFT, you say?”
Worry not– a shift back towards balance should mostly be a good thing.
Though we’re in the early stages of really being able to call it a trend, the market is shifting back from a ‘sellers market’ to a little more balanced– both locally and nationwide.
Due to rising interest rates and lower affordability (goes hand-in-hand with rising rates and rising home prices), the primary home market (existing home sales) has more or less peaked…for now.
The winds of change affect both the macro-economy, and our micro:
What you see here is a RIDICULOUS market in which we’ve been working. Median days on market under a week, and sold prices at or exceeding list price more often than not. Seeing days on market rise and SP/LP ratio fall is not a precursor to an economic collapse. It is just a shift of power in the market from sellers to buyers.
On an anecdotal level, I see many agents in some of our local networking groups asking “are you seeing a slowdown in showings?” That does not have to be the case, but is a reflection of buyer frustration and market fatigue.
Depending on where you sit, this can be good news or bad news. If you’re a buyer under $500,000, good news! It means that there are going to be less situations in which you have to submit crazy offers and pray you win in a multiple-offer situation. Instead, more of a balanced, steady market with room for negotiation.
If you’re a seller, you may not be able to hold out for the “knock our pants off” cash offer 6% above list price.
The shift is a consequence of a healthy market. Its generally a correction that happens every 7-8 years, this one is just a little late. And it represents opportunity for jaded buyers to start their home searches in earnest, again.