This is beginning to look like a different version of the 2021 market. The neutral market we were headed towards has reversed, and is headed back to a stronger and stronger seller's market every week. And, this is despite 30yr rates still above 6%. Inventory is still creeping down. We are now ten weeks passed when the inventory historically bottoms out. Instead, we can continue to see less new active homes for sale. The homes that do come up for sale get bought up rather quickly. We see this in the DOM (Days on Market) coming down again, pending sales MoM increasing and housing prices sustaining and in some areas increasing. The absorption rate is well over 33% on closed sales and pending sales. Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month. In other words, as new houses come up for sale, they get gobbled up by eager buyers. If you are a buyer, you will need to be ready and have a plan of action in this market. Anything less and the house you love will slip away. This means: Be pre-approved with a local lender, set up a search at least 25-50k below your max, talk with your agent about your gotta haves and no-nos, and discuss negotiation strategy and what it could take to win the home in a multiple offer situation. If you are okay with light fixers, or needs updating, then start the search with homes that have been sitting for 20+ days. If you are a seller sitting on investment homes, tired of managing property or looking to take advantage of a successor/trustee, probate or pre-foreclosure situation, well...now's the time to take advantage, don't let it pass trying to catch a new top. How about those Kings! Light the Beam!What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
