"How's the Market" August 29th edition

“How's the Market?" is the question most frequently asked of us Realtors, and with good reason. The housing market is a reliable indicator of the overall health of the economy, regardless of whether you're buying, selling, or investing. As the kids return to school amidst? the? lingering summer heat and humidity,? I'll continue answering the question by sharing Monday morning updates on housing market activity in the geographical area shown above.

The question of the week: Will this be the last weekend of anemic listing and contract activity, or will the activity continue to flatline? Listing and Contract activity was virtually identical to last weekend, and interestingly enough, a mirror image? of activity levels for the same weekend? in 2021. Only time will tell whether it’s the typical summer slump, or if buyers are taking a “wait and see” approach to see whether the rates drop a tad more, or if they are anticipating a rebound of listings come September.??

This August 29th Barron's article outlines the severity of the sharp decline in market activity: " Dahl, an analyst covering home builders at RBC Capital Markets, says prospective buyers in many metros are stressed relative to local historic norms. “By no means has this modest pullback in rates from 6% to five and a half percent all of a sudden cured the affordability challenges that are fairly acute in most key markets,” Dahl said. “We expect the declines in demand to really persist in a meaningful way for some time.”

This volatile market requires? intimate knowledge of shifts within the market, for sellers, and buyers alike.? In spite of, or more accurately - because of -? all the wildly mixed housing reports out there, you need to know how to proceed, and I’m here to help.??

??????????????????????Between Thursday August 25th and Sunday, August 28th:

• 36 properties came on the market (up 3 units over? the week prior)
• 28 detached properties, ranging from $449,000 to? $1,695,000
• 8 townhouses, ranging from $495,000 to $1,690,000

During? the same period?

• 20? detached properties went under contract (compared to 21 last year)
• 5 were on the market 7 days or less, and of those
• 3 went under contract in 4 days or less

In order to provide a more thorough overview of the market, I've been tracking another category: homes that have been on the market for 30 days or more. This category is often overlooked by buyers just entering the market, but it represents hidden opportunities as sellers feel the pain of overpricing and are then forced to correct their pricing as they chase the market down. As further evidence that price appreciation has decelerated, it’s significant to note that this segment of the market has seen the most consistent increase.?

In the first week of January, there were 32 single family homes in the 30+ days category. There has been a steady increase, and today that inventory stands at 115 properties. 74 of these homes are priced under $1,000,000, and of those, 53 had a price reduction.?

• 50 have been on for 60 days or more?
• The current record-holder has climbed to 544 days on the market.?

Market data can only get you so far, you need a guide (like me) to use it to your best advantage. If you’re contemplating venturing into the market, whether selling, buying, or investing, I’m here to help.

Pray for Peace in Ukraine.