Will the Spring Market Arrive Sooner than Later?
What an interesting January we have experienced both weather-wise and in the real estate business. We have golfed and we have shoveled snow/ice this month. We have had multiple contracts on some houses, and we have had houses sitting on the market (with no showings) for days and even weeks. We have had mild temperatures and we have had epically cold days. We have had 30 plus people at open houses on weekends and we have had no visitors at others. We have windy days and days that had no breezes. We have seen mortgage interest rates go up and now they are at yearly lows. And, like the temperatures this week, we have seen inventory levels drop to 14-year lows. As I said, it was a very interesting January.
The biggest question we have in the real estate industry is… When will more houses come on the market for sale? Historically we have seen houses start go up for sale the second week of February. So, will this year be the same or will we continue along the same path we are on now…inventory levels going down? The answer is, time will tell. In conversations with agents across our five offices, we are hearing about some houses will be “coming soon” but not a significant number of them. If you are considering selling, this could be your perfect time to do so.
What is odd to me, and others, is prices are not escalating like you might expect. The tried and true economic theory of supply and demand in regard to pricing does not apply in this market. We have a lack of supply and LOTS of demand, but prices are staying relatively flat and, in some situations, we are even seeing price reductions fairly regularly. Additionally, in several multiple contract situations, we have not seen escalation clauses or even full price offers. Going back to my original sentence, it was an interesting January.
All this being said, we can provide you with the right advice on how you should approach this “interesting” market. Whether you are selling or buying a home, each market and personal situation is different. So, give me a call to learn more.
Happy Valentine’s Day!