What does it mean with listings and pending’s cross? See the graph below:
Welcome to the World of ALWAYS Changing Real Estate!
Here is what we know: (or what I think I know…stick around for 5 minutes, it will change.)
- Inventory is still low – 2.3 months.
- 50% up from one year ago, but still low.
- Rates have doubled –knocking some buyers out.
- Pending’s continue on the decline trend; hence why New listings and Pending’s are become the “new twins” of real estate.
- We shall see what next month will bring.
But Laura, Does this spell disaster for housing? Not necessarily. Does it mean, real estate threw us change up? INDEED! 100%!
- The pending market is looking similar to January 2021.
- My only issue is, almost every market, local and nationally, declined during the summer months – that was a unique trait of this market.
- Typically, we slow down from September to February. Real estate has always been seasonal…well, until COVID changed all the rules or normalcy.
What are we seeing? Eye spy:
- Price corrections / adjustments, whatever. – agents, get your Listing and Price correction systems together, now. Prepare your clients for the worst and WORK for the BEST!
- Expired listings
- And a continued increase of agent sales force… continuing to create an even tighter market for opportunity (we can help with these strategies too.)
Laura’s 2 cents:
- As pending(s) decline, inventory will increase. Even if it’s slow about it.
- Price adjustments will be a thing, or shall I say, a common practice that has RETURNED
- Remember expired listings; neither to do I, but your competitors do.
- Get your systems, timing, and scripts in order for price adjustments and expired listing(s); creating MORE opportunity in this market.
- And your people that bought in the last 12 months didn’t lose anything. It was a PAPER win, and it is a PAPER loss.
- The cost of rent and inflation continue to rise; stabilization your situation is not a loss. I can convince anyone of that.
- And………… people will always need to buy and sell estate
- And… PRICE…. The #1 reason homes don’t sell. There is always a buyer for the right PRICE!
Which leads us to our Valley’s Mix of Business these days:
- Do refinances exist anymore? Only for death & divorce… seriously.
- Resale is up to almost 70%. Which is up 35% from last year at this time.
- Commercial has taken a dive; down 50% from last year and last month.
- New builds…. Well, at least they’ve stayed consistently low at less than 7% of the total Willamette Valley market.
The real question is, when will INFLATION go down?
- It’s a simple supply and demand issues
- The feds want to demolish demand
- Control the price of money, that does directly influence loans = painful to borrow money because rates are higher, and now the payment is higher.
- The Feds are essentially destroying demand.
So at this point, what the future holds, is as good as your guess or even mine.
In short:
Do more……….. this is where we can help.
