🏠 Welcome to this weekend’s Market Pulse! If you’re short on time, check out the TL/DR video for a quick summary. For everyone else, let’s dive into the latest data from RLAH @properties for October 2nd to October 9th and take a closer look at the evolving market.
📊 Market Pulse: October 2 - October 9
• Average Number of Offers: 1.3
(A noticeable drop from 1.9 last week, suggesting a softening in competition. 45% of new contracts received multiple offers, down from 57%.)
Offer Prices:
• Above List: 37% (down from 64%)
• At List: 45% (up from 21%)
• Below List: 18% (up from 15%)
Inspection Trends:
• No Inspection: 18% (down from 29%)
• Full Inspection: 64% (up from 29%)
• Pass/Fail: 18% (down from 42%)
• Pre-Inspection: 0% (unchanged from last week)
🌡️ Market Analysis:
This week’s data suggests a cooling in the market, with fewer offers per listing and a significant drop in the percentage of offers above list price.
• Impact of Interest Rates: The softening in competition is likely tied to rising interest rates, which have been creeping up over the last few weeks. Higher borrowing costs could be reducing buyer urgency and dampening overall activity.
• Lower Activity and Inventory: There are fewer listings compared to this time last year. The combination of higher rates and low inventory makes for a challenging market environment for buyers and sellers alike and can further impact market segmentation.
• Shifting Inspection Strategies: Full inspections surged to 64%, indicating buyers are more cautious and thorough. Meanwhile, pass/fail inspections dropped significantly, suggesting buyers are less willing to risk going into contracts with limited contingencies.
• Market Timing: With Yom Kippur this weekend, open houses are likely to be limited, including mine, as I’m putting off any open houses until next weekend. However, this could provide a window of opportunity for buyers to make moves on available properties without as much immediate competition.
📈 Market Implications:
• For Buyers: While competition has softened, the low inventory and rising interest rates make this a tricky market to navigate. This weekend could be a good time to act, creating an opportunity for motivated buyers.
• For Sellers: The drop in above-list offers indicates that pricing your home right is more important than ever. Setting a competitive price can help attract serious buyers in a market where higher borrowing costs may limit purchasing power.
📅 Looking Ahead:
As we approach the Fed’s next meeting on November 6-7, I’m anticipating another interest rate drop, which could spur activity. Stay tuned for next week’s Market Pulse, where I’ll continue tracking how these factors affect the market. For a more detailed analysis or if you’re curious about how your real estate plans might be impacted this weekend, feel free to reach out at 301-564-3058 or email me at Corey@FeldmanGroupRe.com!
Weekend Market Pulse: October 11, 2024