The market is heating up even though the statistics don’t show it yet. Most homes take 21-30 days to close, so these numbers reflect December’s sluggish pace as opposed to the surge in buyer activity that we are seeing now. Multiple offers are back, and I’m betting that next month’s data will tell a very different story than the depreciation above.
One of the best leading indicators of demand is mortgage purchase applications which jumped 27% in early January and has held steady since. For supply, the data indicates that many sellers held off until after the holidays to list their homes. Active listings increased by 11.6% which is a stark contrast to the historical trend of a 3.9% decline from December to January. Even more surprising? New listings are up 31.9% year over year. If this trend continues, we could see a more balanced market in the coming months.
TLDR Buyers: Be prepared to move fast on the right home and pay at the top end of what the comps suggest that the home is worth. Sellers: If you’ve been waiting for demand to heat up, it’s here. The best strategy is to price competitively and leverage multiple offers to get top dollar.
