What we saw in toward the end of the third quarter, as I mentioned before, is a drop in supply that helped us get back to a balanced market, not favoring sellers or buyers. It seems however that we should not get too excited as there are many factors that are still counting against sellers right now.
It appears that even though there have not been a whole lot of new listings, in fact very few, demand has also begun to weaken a little from the low it was already at. The amount of listings that are pending right now has dropped nearly 6% from last month, indicating a drop in demand. The total inventory or supply of listings is up 2%, conversely indicating an ever so slight increase in supply.
Market experts are predicting an increase in listings until Thanksgiving, at which point it is expected to drop down again. What does this all mean for sellers? Well it’s a tough road right now, which means we have to be competitive in price, the best presentation possible, and a little bit of patience… ok, maybe a lot of patience.
As professional Realtors, we often tread the fine line of staying optimistic, but also reporting negative facts taking place on the ground. Thankfully, we can remain optimistic because we enjoy where we live and life is good, except when it’s not – and that’s life. If I am a person who really enjoys my home and the memories it affords me, then I’m not that concerned about what the local real estate market is doing. Least of all week to week or month to month.
I do however confess to having a penchant for being a market observer, and the main reason for that is that 90% of the time when I see a client, even casually apart from biz, they inevitably ask, “Mike, how’s the market?” I’d like to be able to intelligently answer them something other than, “I dunno.”
So when we find ourselves in the languid real estate market that we are, we need to come up with the right spin, and in this case, currently, there is an honest spin that works. Here it goes: Fence sitters, your time has come, get your financial house in order, and get ready to buy a house shortly, because there’s going to be some great buys between now and the end of the year. “I dunno Mike, sounds like Realtor hype to me.”
The truth is that we’re seeing (literally) hundreds upon hundreds of price reductions weekly. If you combine that with very low mortgage rates, and a jobs economy that’s turning around, it may very well result in a booming market. When that happens, just as in our not too distant past, prices escalate rapidly and then, in the words of Carole King, “it’s too late baby, now it’s too late…”
– Mike Bodeen