December brings gifts for Buyers but not for Builders
Well, builders aren’t giving up the entire goose quite yet! We have nowhere reached 2007-2008 giving levels.
Follow me, to learn what’s up, what’s down and what might we have to look forward to.
In November:
- 36% of single-family builders reduces their home prices
- 59% of those, were offering special sale incentives
According to the NAHB, these numbers have been steadily growing since July of 2022.
The chart below illustrates the five most common type of incentives that builders are currently using to boost sales and/or limit cancellations:
This is a positive, however, when we consider that as an industry, we are still at record low inventory levels and need more single-family residences built to regain a “balanced” market. Which leads me to what’s going on in our neck of the woods.
Looking at the Willamette Valley:
What’s Down?:
- Pending sales – down 50% from May 2022
- Closed sales – down 41% from December 2021
- List price received – down 1.5% from December 2021
- New Listings – down 26% from December 2021
What’s Up?:
- Median sales price – 8% from December 2021
- Days on Market – up 26% from December 2021
- Months of inventory – up 216% from December 2021
- Price adjustments – over 500 monthly
What does this mean? Piatt’s two cents:
Saddle up my friends:
- In the next 60-90 days:
- Sales price will decrease
- Days on market will continue to rise
- Likewise, so will inventory
- Buyers will have more opportunities
- Sellers will be more likely to give
- My advice to Agents:
- Get ahead of price adjustments
- Price the property to sell based upon active inventory comps NOT 60 days comps
- REMEMBER, The only reason a house doesn’t sell – PRICE, price, price
- DOUBLE DOWN on all your Market efforts
- Focus on CREATING INVENTORY
Contact my sales team!
