Market Trends Overview
The latest statistics tell two different stories depending on how you spin them. Month-over-month, the market is about as exciting as watching paint dry: no real appreciation or depreciation, just tiny tweaks in supply and demand. But here’s the kicker—active listings are up 68% year-over-year, and we have 2.85 months of inventory. Translation? It’s only a matter of time before prices start heading south.
Interest Rates and Election: The Hype
There’s a lot of talk from Realtors and lenders about how dropping interest rates and the upcoming election might boost demand. The Fed seems poised to lower rates in September, and the anticipation has already moved rates down. Yes, lower rates will spur demand, but it won’t have a material impact on the market. Last year, there were 3,175 closed homes in September. Even if demand rises by 50% (which is optimistic), it won’t make a dent in the active inventory count.
Then there’s the election on November 5th. Historically, the real estate market in November is as slow as molasses. Last year, there were only 2,664 closed homes in November. So, unless this election brings something wild, don’t expect it to shake up home prices either.
Looking Ahead: Patience Required
If the market actually responds to these two events, we would see a demand uptick early next year in January or February.
Too Long, Didn’t Read:
Sellers: If we know that your home is priced right, I’m going to advise you to sit tight. Don’t panic and jump on the first lowball offer that comes your way.
Buyers: Now is the time to zero in on sellers who are in a hurry. That’s where the best deals are hiding.
