The third quarter continued a transitional market trend requiring real estate professionals to spend extra time and care evaluating it. Some key indicators, like an increase in sales price, support a seller’s market. While other indicators, like days on market and seller concessions (excluding buyer broker compensation), support a buyer’s market.
By midsummer, mortgage rates were the lowest they have been since April of 2022. This means buyers have more capacity to buy when considering their monthly housing budget. Together with low inventory, the lower interest rates should be in the seller’s favor and indeed home prices have gone up year over year for the quarter in10 quarters.
The quality of inventory has been collectively the lowest since the first year of the pandemic, when houses were selling in any condition and for the most outrageous prices. Q3 finds buyers with capacity, but also patience, as homes that are not properly prepared and/or are overpriced for their condition or configuration are taking longer to sell, driving up days on market. Selective buyers are also much more likely to ask and get concessions when it comes to request for repairs as these homes, as more often than not they are needing them.
It is still unclear how the NAR lawsuit is going to affect the marketplace just yet. Anecdotally, buyers are asking sellers, who are often agreeing, to compensate buyers for the purpose of paying their agents.
If you are wondering if now is a good time to buy or sell, give us a call and we will be your guides.
