Market Update October
After an increase in inventory in July when sellers quickly moved to the market in a last effort to get sold before the FED increased the rates. The upswing in inventory created a healthier market; however, with the rates steadily increasing and the holidays approaching, the market has cooled down on both sides.
The homeowners that bought in the last two years or refinanced at very favorable rates are less likely to sell their homes unless they have to. These homes will be off the market for extended periods unless forced to move. This means that many individuals who would have looked at upgrading their homes are now looking at costs that are significantly higher than the current payment. With drastic increases in housing costs, this is a clear motivation to stay put.
Buyers that are entering the market and leaving the market are the main participants for the upcoming period. These people are motivated by factors other than the interest rates, such as:
-?????High rents
-?????Change in family dynamics
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-?????Change in jobs (location/commute)
This smaller market pool comes at a time that is also the slower time in Real Estate, as nobody likes to move with the Christmas tree already up in the living room. The numbers for September and October indicate that there is less activity in the market resulting in a stabilization of the market at around 2.5 months of inventory. This means it is still a seller's market, even though you see home prices drop. These drops do not balance the monthly payment of an average house.
Will this change? This is the question that everyone is looking to find an answer for, and to be honest; it is impossible to predict. The rate change, the global economy, and other factors play a part in this, and however, for the homes that are on the market, the demand is still there to sell them within 33 days on average. This leads me to believe volume will be lower in the next couple of months; however, the prices will not drastically drop due to the low amount of new homes coming on the market...
If you have any questions on the market feel free to reach out.