September 2021 Market Update
The real estate market has been a topic of great interest and discussion in recent months. With fluctuating trends and shifting dynamics, it's important to stay informed about the latest market updates. In this blog post, we will explore the current state of the real estate market, providing valuable insights for both sellers and buyers.
Market Conditions Overview:
While signs of softening can be observed, it is crucial to consider the context. The market is still predominantly favoring sellers, maintaining its seller's market status. Let's delve into some key indicators:
Showings: The number of showings has experienced a decline in the past few months, but it remains significantly higher than the levels recorded in July 2019 (see Graphic 2). This suggests that buyer demand is still strong, albeit slightly tempered.
Pricing: Roughly half of homes are still selling over the asking price (see Graphic 3). Although there has been a slight adjustment since the spring, pricing remains competitive.
Inventory: The months' supply of inventory is currently at historic lows (see Graphic 6), which contributes to the continued seller's market. However, there has been a gradual increase in inventory (see Graphic 5), but it remains below historic averages. Whether this trend will continue or taper off is yet to be determined.
New Listings: The number of new listings has not reached historic highs, which was a significant factor contributing to the inventory shortage. While there has been an increase in new listings, the market is still grappling with insufficient supply (see Graphic 4).
Offers per Home: On average, homes receive around 4.5 offers, indicating a highly competitive buying environment (see Graphic 7).
Implications for Sellers:
For those considering selling their property, the current market conditions still present favorable opportunities. Here's what sellers should keep in mind:
Great Time to Sell: Despite the softening, it remains a great time to sell your property. The market is still in favor of sellers, offering potential for a successful transaction.
Adjusted Market: Recognize that the market has gone through some adjustments since the spring. It is crucial to set realistic pricing expectations and be mindful of property condition, as these factors now carry more weight in buyers' decision-making processes.
Implications for Buyers:
Buyers also need to adapt their strategies to the evolving market conditions. Here are some considerations for buyers:
Stable Prices: Prices are not projected to decrease significantly in the near future. If you're in the market to buy, it's essential to understand that waiting for substantial price drops might not be a viable strategy.
Market Softening: Take advantage of the recent market softening. While competition remains high, there may be more negotiating power and opportunities to secure a property at a slightly more favorable price.
Inventory Levels: Keep an eye on inventory levels, as they could drop again. Being proactive and ready to act swiftly when the right property becomes available is key.
In conclusion, the current real estate market exhibits signs of softening, but it is still largely a seller's market. Both sellers and buyers need to adjust their strategies to make the most of the existing conditions. Sellers can benefit from the favorable selling environment by setting realistic prices and focusing on property condition. On the other hand, buyers should understand that prices are unlikely to experience significant decreases and should capitalize on the softened market while remaining vigilant about inventory levels. As we progress into the latter part of the year, we may witness a wave of real estate activity. Stay informed, adapt your approach, and consult with a real estate professional to navigate the market successfully.