When we first examine these statistics, they might seem a bit alarming. However, it’s important to remember that while the market may be gradually shifting in favor of buyers, there are plenty of reasons for sellers to remain optimistic. Let’s delve deeper into these numbers and discover the silver linings that await savvy home sellers.
To put things into perspective, these stats should be viewed in comparison to the same month last year. The median price for homes sold last year has experienced an 8.2% decrease. For instance, a $600,000 home sold 12 months ago would likely sell for $550,800 today. While this decline is significant, let’s consider the bigger picture. If you’re selling your home to move across town, the property you’re buying has also seen a decrease in value. Essentially, you’re both buying and selling within the same price range.
Now, let’s address the fact that our inventory has increased by 40.1%. At first glance, this might cause concern, but it’s crucial to remember that our region’s inventory was not sustainable a year ago. In a healthy market, a minimum of 45 days of inventory is necessary for both buyers and sellers to have a positive experience. By comparison, this time last year, we had less than 20 days of inventory. Therefore, a 40% increase from almost nothing is far from a catastrophic wave!
When we consider the number of new listings and current sales, it’s important to view them as a package deal. With fewer listings entering the market, it’s logical that there will be a corresponding drop in sales.
So, does this imply that it’s a terrible market for sellers? Not at all! The market has undergone some changes compared to 12 months ago, and in some ways, it has become more favorable for both buyers and sellers. Buyers no longer find themselves engaged in bidding wars with desperate competitors, allowing them to make more informed decisions. Sellers, on the other hand, still face limited competition for their properties, as evident from the average time on market being just 7 days. That’s still quite remarkable!
Today, the Federal Reserve decided not to proceed with a rate hike, and with the resolution of the debt ceiling issue, rates have slightly decreased. Consequently, for most people considering selling their property, it continues to be an opportune time to move forward with their plans.
Don’t miss out on maximizing the potential of your home sale. Embrace the positive dynamics of the market and seize this moment to make a successful move. Contact us today to embark on a rewarding journey toward selling your property.
Photo Credit: Dylan Kidd