Monthly Market Update: October 2023 Wrapped
The real estate landscape has shifted in interesting ways, presenting both challenges and opportunities for buyers and sellers. Let’s take a look at the current key market indicators and what they mean for anyone looking to purchase a home.
1. Buyers' Opportunities: We’re still seeing an increased months' supply of inventory, which now stands at 2.3 months. This is excellent news for buyers who are ready to purchase because it means more homes to choose from and more negotiating power. Buyers can request repairs during inspections and avoid the need to waive appraisals or put up cash for appraisal gaps. You can ask sellers for rate buydowns or assistance with closing costs.
2. Steady Listing Numbers: There are currently just over 7,000 total listings available for sale. While there are still plenty of properties on the market, buyers should act promptly and decisively when they find the home for them!
3. Odds of Selling: The odds of selling remained steady at 42.7% for listings made in the past week. This is notably lower than the historical average of 49.4% for October in the years 2013-2019.
4. Balancing the Market: To achieve a balanced market with a 6-month supply of inventory, we would need nearly 19,000 listings on the market. Currently, we are at 37.7% of this balance, suggesting that the market is still tilted in favor of sellers.
5. Showing Activity: On average, it takes 15 showings for a property to go under contract in a median time of 23 days.
6. Price Reductions: The rate of price reductions has increased to 47.8% of units going under contract, with a larger reduction of -6.6% off the original price. Half of sellers may be more willing to negotiate on price, offering additional opportunities for buyers! Sellers - pricing appropriately is so important.
7. Sellers' Persistence: Sellers are willing to negotiate this fall, rather than withdraw or allow listings to expire. This reflects a seller's market where both parties can work together to achieve their goals.
With increased inventory, steady listing numbers, and price reductions, buyers can negotiate more effectively and secure favorable deals. It’s essential to remain proactive, act quickly when the right property comes along, and stay informed about market conditions. I’m here for you!
