With so much conflicting information about today’s real estate market, this seems like a salient time to share my perspective and to clarify where we truly stand in this market. Many buyers are holding off until after the election to make a move, but this may not be in their best interest. Historically, home prices tend to rise by around 5% in the year following an election, while interest rates often decrease, inviting more buyers into the market. This increased demand can drive up competition, especially with the limited inventory available. Waiting could ultimately mean higher prices and more competition. The savvy buyer would benefit from acting now rather than later. Contrary to some beliefs, a significant drop in home prices is just not happening in our region. For prices to decline, we’d need a large influx of inventory—something we’re not seeing nor are likely to. Homeowners are staying put longer, often tied to favorable interest rates, and most are only selling for significant life changes. Additionally, distressed properties, which historically have lower prices, are nearly non-existent. With 40% of homeowners owning their homes outright and 50% of mortgage holders having over 50% equity, the market floor is quite high.
In the 35 years I’ve been in the business there have only been 2 times of major price retreats, both driven by one off events, namely the S & L crisis in the late 80’s and early 90’s and the mortgage fraud driven credit crisis during the great recession in the mid 2000’s Outside of that, price drops have been rare and minimal. For sellers, while the market may have slowed compared to the recent frenetic years, it remains active. The average days on the market has increased slightly— but by only two days over last year. Meanwhile, sales increased by 14% compared to the same period last year, reflecting steady buyer interest. As we approach the holiday season, remember that this time of year brings unique opportunities for buyers and sellers alike. Many choose to wait until the new year to make a move, but those who take action now may benefit from less competition and more favorable conditions. Whether you’re looking to buy or sell, having accurate, up-to-date information is essential. Please reach out if you or someone you know is considering a move—I’d be glad to help you navigate today’s market with confidence. Wishing you and yours a very Happy Thanksgiving!
It’s a good life.
Chris
