October Market Update
October was… well, October was not really exciting at all. We saw a drop in new listings, closed sales, and active inventory. We saw a rise in our median days to contract, meaning the market slowed down a little and buyers are taking their time deciding on a property. We also saw a small rise in median sales price and price per square foot. This is all pretty standard for October.
The October market tends to show signs of slowing down while also bringing some higher prices from the homes that went into contract in the middle of September bringing the summer to an end.
In this case and in my opinion, I love the non-excitement of the market in October 2023! I love it for a couple reasons.
- We have been showing some stability in the market for the last 5 months. Prices aren’t dropping but they aren’t rising at a crazy rate either.
- I love that it’s taking a little longer to get homes into contract. Buyers can be a little pickier and not have to give up their first born to get an accepted contract.
- Negotiations are HUGE right now. It’s actually been fun negotiating for our buyers and getting them “deals”.
As we’ve said over the last year and a half, rates are going to play a huge role in what we can expect in the marketplace. Let’s be honest, rates have been trash lately. Coming off the boom in 2020 and 2021, it’s hard to imagine getting a mortgage for over 8%; however, many buyers were faced with that reality over the last few months. We are seeing rates drop over the last couple weeks. While I hope we continue to see rates improve over the holidays, I honestly have no idea where they will go. Only time will tell.
If we do see rates drop substantially over the next couple months, a lot of experts are scared we’ll see prices increase due to all the buyers that will rush to the market. On the flip side, some experts are saying we’ll see prices drop because the sellers that have been “trapped” in their sub-five percent rates will start to list their homes and we’ll see an influx of new listings hit the market. Talk about two very different opinions!!! I am excited to see where we go from here.
Buyers:
We are continuing to see sellers give a credit to buy rates down, but I’m not sure how much longer we’ll be able to get these with prices leveling out. We are starting to run into problems with appraisals when asking for these credits, which is a whole can of worms I can open up if you give me a call. If you need to buy, it might be a really good time for you to get in the mix before these credits dry up.
Sellers:
Focus on pricing your home correctly. You can’t get greedy in this market. On top of that, get your home looking nice! Remove the clutter, paint that wall, clean your baseboards, tidy up the yard. Most buyers right now are looking for something turn-key. Make your home shine.