Top Expert Explains End of 2024 Real Estate Market

In his latest video, Michael Cheever explores the cyclical nature of the real estate market, emphasizing the importance of quarterly data analysis. He believes that a 90-day period offers a robust snapshot of market trends, helping professionals make informed decisions.

For a more detailed analysis and to stay updated with market trends, watch the full video here.

Market Share and Sales Analysis

Market Share: Keller Williams dominates with an 18.4% share of the market. This is a crucial metric for understanding the competitive landscape.

Home Sales: The number of homes sold in Q2 2024 is only 1% less than in Q2 2023. This slight decrease contradicts the negative media portrayal of the market, indicating stability.

Supply and Demand Dynamics

Balanced Market: A balanced market has 6-7 months of supply. Currently, supply is increasing, moving the market towards balance. This shift is critical as it affects pricing and market power dynamics between buyers and sellers.

Supply Trends: Increased supply is beneficial in a market with historically low supply levels, as it can help stabilize prices and provide more opportunities for buyers.

Days on Market and Pricing Strategy

Days on Market:

• Properly priced homes sell in an average of 10 days.
• Overpriced homes take about 75 days to sell and often require price reductions.

Pricing Impact:

• Homes priced correctly from the start sell at 100% of the list price.
• Overpriced homes that require reductions sell for about 7% below the list price.

Sales Outcomes

Successful Sales:

• 48 out of 100 homes are priced correctly and sell quickly at the list price.
• 23 out of 100 homes sell after price reductions, typically for 7% less than the list price.

Failed Listings:

• 29 out of 100 homes fail to sell, highlighting the importance of accurate pricing.

Market Matters Event

Michael emphasizes the importance of understanding market statistics. He invites viewers to the "Market Matters" event, held quarterly, which provides detailed insights into both national and local real estate markets. This event is invaluable for agents, buyers, and sellers aiming to stay informed and make strategic decisions.

Conclusion

Michael's key takeaway is the critical importance of pricing properties correctly from the start.

Accurate pricing leads to quicker sales and maximizes returns. Understanding market dynamics and being able to communicate these insights to clients is essential for success in real estate.

For a more detailed analysis and to stay updated with market trends, watch the full video here.