This past week YOY – Total market activity is up 5.2%, fewer homes are hitting the market with new inventory down 13.1% (it flipped with the previous week on which home had more homes hit the market). Homes under contract are down 5.5% which means that the added inventory we are seeing is represented by unsold homes that are sitting on the market longer than this same period last year. While this is not a significant increase in inventory, it does represent a rising number of homes on the market – thus more price reductions and a little more wiggle room will be normal for homes that have been sitting over 60-90 days.
From two weeks ago YOY – Total market activity is up 6.5%, new inventory is up 11.5%, Active homes on the market are up 12.5%, homes under contract are down 9.2%.
Fewer homes going under contract and fewer homes selling is going to impact inventory going into spring and summer.
We have been predicting this sort of movement in the market since hurricane Harvey hit last August. Now you can start to see numbers pulling through to see what we have been talking about. Interest rates rising and days on market starting to tick up means that for Sellers, price reductions quickly is crucial.
For Buyers, if it’s a hot property, it will still go quickly if priced right. The majority of the homes we have personally purchased went over asking price because they were very fairly priced to being with. So, don’t assume that every home needs to negotiate off of list price. Pay attention to rising interest rates as it will make a bigger difference over price increases this spring season.
If you know of anyone looking to Sell their home, please let us know ASAP. It is crucial to time this market correctly to maximize profits, and this is something we can definitely help watch.