no hassle listing blog

The Long and the Short of it

Despite interest rates falling to their lowest number since February 2023 the market remains tepid.  The buyers’ response to lower rates while positive, is still minor.  According to the Cromford Report, the number of properties under contract is up 1.5% from this time last month, and yet still down 1.2% from a year ago.  Of course this could all change (perhaps rapidly) if rates drop further.

With the elections looming, many wonder if that will act as a catalyst to the market.  We have commented before that elections do not greatly impact the real estate market.  But no one makes this case better than the Cromford Report:

“Every election year people ask if the presidential election has a significant effect on the housing market. The short answer is no.

There are always a few buyers who loudly claim they are deferring any home purchase decision until they find out the result of the election. These people are a tiny proportion of the total, insignificant in the overall context. In fact if we examine the volume of sales in the 5 months leading up to a November election we find that:

in 2004 and 2020 home sales were stronger than normal non-election years

in 2012 and 2016 home sales were in line with normal

in 2000 and 2008 home sales were weaker than normal non-election years

Notice that each line includes one win for the Republican nominee and one win for the Democratic candidate, so sales volume does not even seem to correlate to who wins.

The weaker years (2000 and 2008) correspond to recessions which are more likely to cause weaker home sales than elections.

The housing market is affected by life decisions and events like couples deciding to live together, have children, separate, job moves and a death in the family. Politics has much less impact than politicians would have you believe. The state of the economy and taxation rules will have a significant impact on the market. But predicting how the economy will behave and what taxation changes might come into effect after a president’s election proposals have been heavily modified by congress is fraught with risk. Pundits will predict, but no-one is good at this forecasting and results rarely match what is predicted. Unexpected events like epidemics have a more dramatic effect on the housing market.

So the long answer is also no.”

Russell & Wendy Shaw

(Mostly Wendy)

The valley’s real estate market has been stuck in neutral for a while.  Both buyers and sellers have largely been staying on the sidelines and often for the same reason – interest rates. Sellers wanting to move, swallow hard when considering giving up their 3% mortgage for a 7+% replacement rate.  Buyers look at their decreased buying power when rates are elevated. This results in a low volume market (i.e. fewer transactions). Finally, August 5th, the long awaited drop in interest rates happened when rates fell to the 6.5% range.  While that won’t impress sellers holding 3% mortgages – it is a full percent below April’s rates of 7.5%.  Buyers may be surprised that a 1% drop in rates affects their payment comparable to a 10% drop in the home price.  That is a dramatic shift in buying power.  But the psychology of money is a funny thing – this drop in rates increased the number of mortgage applications only by a measly 1%.  Why?  When rates drop, buyers don’t always act immediately – in hopes they will fall further as the pundits keep predicting. 

For sellers trying to sell in this market, this balanced market of low supply and low demand, feels decidedly unbalanced.  A low volume market equates in to lower showings, thereby fewer offers, longer marketing times and often more buyer demands in concessions and repairs.  How can that be a balanced market? Because balance and normal are two different things.  The fact is that our market spends far more time in a seller’s market than a buyer’s market.  As the Cromford Market Report explains: “Over the past 24 years, we have tended to be mostly in a seller’s market and when we are not, we often have a buyer’s market. In buyer’s markets DOM (days on market) values get very high, even well into the hundreds of days. Since we are rarely in a balanced market, sellers experiencing them tend to think they are worse than balanced, because they feel “worse than normal”. They ARE worse than normal because a normal market is unbalanced in favor of sellers. Balance and normal are not the same thing.”

On the bright side, it does appear that the market has hit bottom with signs that micro improvements are now favoring sellers.  But these changes are small enough to be nearly undiscernible. To further quote the Cromford Report :  “The change is still painfully slow but it is real. The trend has reversed but is yet to gather any significant momentum….

The market is starting to improve for sellers overall and I hope buyers took good advantage of their opportunity to negotiate harder over the last 3 months.

Cave Creek, Paradise Valley, Buckeye and Fountain Hills are showing the largest percentage gains. In addition, Scottsdale, Gilbert, Maricopa, Goodyear and Peoria are all up over the last month. The largest declines are still concentrated in the Southeast Valley (Tempe, Chandler and Mesa), but Avondale has weakened substantially too…

9 out of 17 cities remain seller’s markets… We have 3 cities that are balanced, while the remaining 5 are buyer’s markets. “

Prices are a trailing indicator of the market, and overall the average appreciation in the last year has been an anemic 1.9%.

For sellers, until our market comes out of the stalemate, expect longer marketing times with fewer offers.  Prepare to pay concessions as over 55% of sellers are currently doing.  For buyers, waiting for lower rates may not be your best strategy.  When and if rates drop, competition for homes will rapidly jump and likely without a corresponding jump in supply. With buyers currently thin on the ground, you have better bargaining power.  This is when agents can prove their value in good negotiation and expert market analysis.  Even these subtle tea leaves can be read by experienced eyes.

Russell & Wendy Shaw

 (mostly Wendy)

Why Does Balanced Market Feel Unbalanced?

The valley’s real estate market has been stuck in neutral for a while.  Both buyers and sellers have largely been staying on the sidelines and often for the same reason – interest rates. Sellers wanting to move, swallow hard when considering giving up their 3% mortgage for a 7+% replacement rate.  Buyers look at their decreased buying power when rates are elevated. This results in a low volume market (i.e. fewer transactions). Finally, August 5th, the long awaited drop in interest rates happened when rates fell to the 6.5% range.  While that won’t impress sellers holding 3% mortgages – it is a full percent below April’s rates of 7.5%.  Buyers should know that a 1% drop in rates affects their payment comparable to a 10% drop in the home price.  But the psychology of money is a funny thing – the drop in rates increased the number of mortgage applications only by a measly 1%.  Why?  When rates drop, buyers don’t always act immediately – in hopes they will fall further. 

For sellers trying to sell in this market, this balanced market of low supply and low demand, feels decidedly unbalanced.  Why? The fact is that our market spends far more time in a seller’s market than a buyer’s market.  As the Cromford Market Report explains: “Over the past 24 years, we have tended to be mostly in a seller’s market and when we are not, we often have a buyer’s market. In buyer’s markets DOM (days on market) values get very high, even well into the hundreds of days. Since we are rarely in a balanced market, sellers experiencing them tend to think they are worse than balanced, because they feel “worse than normal”. They ARE worse than normal because a normal market is unbalanced in favor of sellers. Balance and normal are not the same thing.”

For sellers, until our market comes out of the stalemate, expect longer marketing times with fewer offers.  Prepare to pay concessions as over 55% of sellers are currently doing.  For buyers, waiting for lower rates may not be your best strategy.  When and if rates drop, competition for homes will jump.  Right now with buyers thin on the ground, you may have better bargaining power.  This is when agents can prove their value in good negotiation and expert market analysis.

Russell & Wendy Shaw

(Mostly Wendy) 

Market Erosion

The trickling erosion of the market continues although the rate of erosion appears to now be slowing.  While supply is up, in fact up a whopping 57% from this time last year, it is still below normal.  Demand is more problematic and continues to be anemic at best.  It seems likely to stay that way unless a drop in interest rates changes buyers’ appetites.  So although we are overall in a balanced market –  for most sellers it doesn’t feel that way.  In fact, areas and price points are behaving differently.  In the center of the valley, supply is more constrained as builders have no land to create new product and thereby more competition.  It is the outer areas where builders are active that sellers are at a marked disadvantage.  Price, a trailing indicator, is being affected currently in part due to the luxury market going flat in summer and in part by seller needed price reductions.    As the Cromford Report shares “seasonal patterns are being emphasized by the weakness in demand”.  So the real two-word problem is – anemic demand.

 The Report further summarizes:

We are firmly into the quiet season and closed sales for June 2024 were already down 15% compared to June 2023. We anticipate low volumes to continue during July and we have 2 to 3 months of seasonal price weakness to endure before the market is likely to pick up steam again in October. This could be jump-started early by a drop in interest rates, but we are not holding our breath.  There is no need for panic, but patience is definitely being tested.

Buyers should take advantage of the lull as they have a chance to negotiate in their favor with more choices to consider.  Sellers need to brace for less showings and offers and try to hang on to the buyers they attract.  Patience seems to be the byword.

Wonder what your specific neighborhood is doing as far as supply/demand and pricing?  Contact us we are always here to give you facts, not headlines.

Russell & Wendy Shaw

(Mostly Wendy)

Most people falsely believe that election years somehow benefit the real estate market.  Elections can affect the stock market (which can affect the luxury market) but the basic underpinning of real estate remains supply and demand.   Real estate agents had hoped 2024 would see an improvement over 2023, but instead a very slow motion chill has been taking place all year creating an even more anemic market than the last.  Slow moving change can prove challenging to interpret given that it is harder to perceive minute, but persistent, changes than seismic shifts.  Not surprisingly interest rates appear to be the major culprit.  Buyers are unenthused by current rates.  The only reason we are not in a decidedly buyer’s market is that sellers have been equally unenthused to sell and give up their mortgages that linger in the 3% range.  With both sellers and buyers in retreat, the result is a low volume (low number of transactions) market. 

Supply

Even though supply has climbed slowly due to decreased demand – that steady creep has resulted in a 54% increase in the number of homes for sale compared to last year.  Additionally, the new build market is faring better than the resale market, which creates further competition for the resale market.  Sellers (along with their agents) are just starting to get the message.  Sellers have begun to recognize that buyers need help with closing costs and buying down rates – as the monthly payment impacts buyers more than sales price does. In the midrange price points, sellers are giving concessions to buyers in more than half the cases.   In the million+ category, rates are not typically a factor and pricing is therefore the target.  The average seller in that category is giving up $51,000 in price, up from last year when the average was $36,000.    The Cromford Report confirms:

“Supply continues to climb, which is unusual for the time of year and we notice that the rate of climb has increased since last month. Buyers have 54% more homes to choose from than they had last year but still face 30-year mortgage rates over 7% which is limiting demand. Sellers are starting to face serious competition from each other and their agents are having to work hard to get their homes sold.”

Sales

Climbing supply and subdued demand results in a cool market.  If we compare the active listings to the number under contract (the contract ratio), we statistically confirm the clear cooling trend.  Again we turn to the Cromford Report for these statistics:

“Most of the slightly positive signs we saw last month have disappeared. We have far fewer pending listings than last month and under contract listings are down 7.8% from this time last year…. For all areas & types, the contract ratio has dropped 15% from 54.5 to 46.1 over the last month. This compares poorly with 77.0 on June 1 last year. The current 46.1 reading represents a balanced market with buyers finding plenty of supply to choose from and sellers experiencing more competition from each other than they have for most of the last decade.

The number of listings under contract (8,238) at week 23 is the lowest we have recorded for that time of the year since 2007. At no point so far in 2024 has the count managed to claw its way above the miserable totals for 2023.

Now 2007 was an awful year with the market stalled by the certain knowledge that house prices were about to collapse. We are not in that situation in 2024, but buyer enthusiasm for re-sale homes is still very low indeed. To put 8,238 into perspective, the total for week 23 of 2011 was well over 21,000.”

Price

Shifts in supply and demand eventually impact pricing.  But as we have mentioned before, price is a trailing indicator.  The valley’s median price tends to flatten in the summer due to the luxury segment of the market going quiet as those with a choice seek cooler climates.  To avoid seasonal impact, we simply look back a year where we see that pricing has been fairly stable with only gentle appreciation.  The Cromford Report adds specific clarity:

“Pricing was unexpectedly strong in April, but May has seen this trend reverse and the average price per sq. ft. is now up only 3.5% for the last year. The median sale price was unchanged, as it is far less affected by the luxury home market. It is up just under 6% compared to a year ago.

We are entering the weakest time of the year, between June and September when luxury home buyers are thin on the ground. They tend to find cooler places to hang out than face the heat of a Phoenix summer house hunting expedition. Investors are busy during the summer as bargains are easier to find and gross margins on fix-and-flips are looking very healthy these days. Investors tend to pay less than market value, so this also drives the average $/SF lower between June and September. We expect pricing to be flat to lower over the next 3 months, after a strong rise between January and May…In other words we are expecting stability in pricing with a slight tendency towards weakness.”

Summary

We are not yet in an overall buyer’s market but the weakening market trends, unless interrupted, say we are slowly arriving there. Many of the greater Phoenix perimeter areas are already there.

Buyers While interest rates are not currently motivating buyers, sluggish demand and supply that is up 54% from last year is providing buyers an opportunity to buy that has been missing for years.  Flat pricing, more choices, and less competition from other buyers is a buying opportunity.  Interest rates can be refinanced in the future when more favorable.  Getting the right house at the right price is key.  If interest rates drop enough (sub 7%) we likely will see a rapid rebound in demand.  Demand moves much more swiftly than supply and supply can dry up rapidly.

Sellers With supply slowly and steadily rising all year, sellers are coming to grips that they need to work harder to attract a buyer.  Sellers haven’t seen a supply/demand ratio as anemic since 2014/2015. As in any market, buyers are rewarding the attractive, well-priced and well-marketed homes.  The less desirable homes with deferred maintenance, need to price more aggressively.  Both categories of sellers need to get pricing right and manage their expectations.    Agent choice matters – good marketing, good market knowledge, and proper pricing are the seller’s best friend.

Russell & Wendy Shaw

(Mostly Wendy)

The quiet market

The marketplace keeps answering the question of whether an election year boosts the real estate market.  And that answer still remains no.  Here is your proof. This market  continues to echo the (non-election) 2023 market – low volume and even quieter than the previous year.  Again, the culprit is interest rates.  The recently released Consumer Price Index showed the annual inflation rate had declined to 3.3% and that good news immediately caused mortgage rates to drop below 7%.  Still, it wasn’t a large enough drop to create a major boost in demand.

While interest rates may not be currently motivating buyers, sluggish demand and supply that is up 54% from last year (according to the Cromford Report) is providing buyers an opportunity to buy that has been missing for years.  In the midrange price points, sellers are giving concessions to buyers in more than half the cases.  Sellers have recognized that buyers need help with closing costs and buying down rates – as monthly payment impacts buyers more than sales price does.  In the million+ category, rates are not typically a factor and pricing is therefore the target.  The average seller in that category is giving up $51,000 in price, up from last year when the average was $36,000.

With supply slowly and steadily rising all year, sellers are coming to grips that they need to work harder to attract a buyer.  Sellers haven’t seen a supply/demand ratio as anemic since 2014/2015. As in any market, buyers are rewarding the attractive, well-priced and well-marketed homes.  The less desirable homes with deferred maintenance, need to price more aggressively.  Both categories of sellers need to get pricing right and manage their expectations.    Agent choice matters – good marketing, good market knowledge, and proper pricing are the seller’s best friend.

Russell & Wendy Shaw

(Mostly Wendy)

A Low Volume Market does not equal a Low Priced One

As we have stated so many times, a low volume market is not a headline grabber.  You wouldn’t know that listening to the “authorities” who trade on clickbait headlines.  For years they have been promising crashing prices.  No, just no.  Here is the truth of the market.  Mortgage rates have remained high for about two years now.  That suppressed demand. But, that does not automatically equate to reduced prices.  For downward pressure on price – you need excess supply.  And while supply has slowly continued to climb – we still aren’t oversupplied.  Rather the cumulative effect is a balanced market.  In reality, that means we have some areas (such as Chandler) favoring sellers and some (Maricopa, Buckeye) favoring buyers and some balanced (Goodyear, Surprise).  The Cromford Report examines the numbers more closely:

“… most cities are either in a much weaker seller’s market, balance, or a full-blown buyer’s market. Supply is up 44% over last year and has reached a level similar to pre-pandemic 2017-2019. Supply is still 27% below normal, but it’s balanced out by demand that is also 20% below normal, suppressed by high mortgage rates.

Under these conditions the market has seen higher marketing times and an abnormal spike in cancelled listings. In a balanced market, it’s important to prepare homes for sale prior to listing and dismiss the idea that a buyer will accept a carpet allowance and credit for repairs over competing homes that are move-in ready. “

But while the market is gently weakening for sellers, the bright spot is pricing (always a trailing indicator) just hit the highest price per square foot for closed sales.  Again, the Cromford Report shares:

“… the monthly average price per square foot for closed listings for all areas and types in the ARMLS database has exceeded $308. This means it has made a new all-time record high – $308.01.

Again and again, they make the mistake of thinking a weakening of demand will force prices down. The market sees low volumes when demand is weak, but to get prices to come down you need excess supply and desperate sellers.

I expect the usual seasonal decline in average $/SF during the 3Q, but for now, the market deserves some respect for its resilience and sellers can celebrate the new all-time high.”

If mortgage rates do not lower –  we can expect supply to continue to build.  In that case, it might be time for sellers to sell sooner than later.  If rates do come down, expect the supply to tighten and pricing to respond positively. 

Contact us for a no obligation, no cost analysis on your home.

Russell & Wendy Shaw

(Mostly Wendy)

The Greater Phoenix real estate market is not much of a headline grabber.  In fact, the marketplace reminds me of a Saturday Night Live skit I watched recently “Pilates – so hard and so boring”. Yup, we see some similarities.  The market has slowly eroded into a sort of balance between supply and demand. However, as we so often have pointed out, to paint the valley with one paintbrush is simplistic and inaccurate.  Specific price points and areas behave uniquely. Of the 17 largest municipalities, 10 currently favor sellers – they are in descending strength: Chandler, Gilbert, Glendale, Tempe, Mesa, Avondale, Phoenix, Fountain Hills, Scottsdale, & Peoria.  Two are in balance, Paradise Valley and Surprise.  Favoring buyers- Cave Creek, Goodyear, Queen Creek, Maricopa, and Buckeye. For those interested in overall market trends, read on.

𝗦𝘂𝗽𝗽𝗹𝘆

Supply has been quietly growing since the start of 2024 and as of this writing, there are over 17,500 listings without a contract.  While this is below the long-term average, as the Cromford Report points out it is still the highest total for the end of the first quarter since 2019. It is also worth noting how unusual it is for supply to grow during March(up 2.8%) during the peak of the spring buying season.  Usually spring buyers are so thick on the ground that supply dwindles.  Not so this year.  As the CromfordReport notes: “Listings under contract are only down 6% compared to last year, but active listings are up 26%.”

Additionally, resale sellers are competing more than ever against builders.  In fact, builders have grown their market share by offering lower than market interest rates (i.e. bulk buying loan money).  That strategy is paying off as new home market share is now 22.6%, while only 3 years ago they were less than 15% of the total units sold in residential homes & townhouse/condo sales. The Cromford Report further examines this:

“Re-sales have been suffering from strong competition from new homes and this source of supply is looking stronger than last year. In February there were 2,810 single-family home permits across Maricopa and Pinal counties which is the highest number since March 2022 and up 107% compared to February last year.

Multi-family permits for February were lower at 1,147 units, down 51% from a year ago. However multi-family permits are a very lumpy number which fluctuates wildly from month to month. It makes more sense to look at an annual running total. This stands at over 20,000 units, which is twice the level we regarded as normal until 2022.

Sellers should expect to be facing increased competition from the new home builders over the coming 12 months.”

𝗗𝗲𝗺𝗮𝗻𝗱

First quarter demand could best be described as anemic, managing to pull even lower numbers that 2023. (Note: 2023 was a very low volume market historically – so lowerthan low is not good news).  The Cromford Report comments:

“Demand remains low and the number of pending listings fell 3.5% from last month and stands over 9% below this time last year. Although the March closed listing count was up 17% from February, this is far less of an increase than we would see in a normal year and the monthly total is down as much as 12% from March 2023. Demand has been weak for a long time and is starting to show signs of falling further. The annual sales rate is now down to the lowest it has been since 2009. As we have pointed out many times, demand for new homes remains far stronger than for re-sales.”

“Everyone is waiting to see if mortgage rates might fall and spark some buyer enthusiasm, but all forecasts of these rates have proven to be unreliable so far.” With inflation still looming as an issue, there seems little indication from the feds that bank overnight rates will be lowered anytime soon.

𝗶𝗕𝘂𝘆𝗲𝗿𝘀

It’s been awhile since we have commented on the iBuyers(Opendoor, Offerpad).  For those who are unfamiliar, these are the companies who give you a “cash offer“ without going through the traditional sales process on the open market.  They buy for profit – theirs, not yours.

At one time the iBuyers reached a market share of about 5.7%.  Now they are only about 1% of the market. Both companies’ monthly volume is 90% below their peak.  Why?  The average iBuyer offer (and this goes for the other “we pay cash for your home guys”) is about 25-30%below market value.  Consumers have gotten wise to this.  While “no commission” sounds great – it comes at a high price.  It is a fair statement to say that -unlike Realtors -cash buyers are your adversary, not your advocate.  If you want market value, you need to be on the market.

𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀

At the moment, the market is quiet and fairly stable.  Since January of 2023, prices have generally been moving higher.  Prices have risen 7.3% over the last 12 months per the Cromford Report and the market is summarized thusly:  

“A one-word summary of the current state of the market would be insipid. Volumes are unusually low but the market is stable and the level of distress remains close to record lows. There is also little sign of a significant change in the near term so those hoping for a major drop in prices are no doubt indulging in wishful thinking. We are heading slowly toward balanced market conditions so the prospect for a rapid rise in prices is also minimal.”

Whether buyer or seller – a stable market does present opportunities.  Contact us for ways to maximize your dollars.  We are your advocates.

Russell & Wendy Shaw

(Mostly Wendy)

We are now in the heart of the spring selling season and yet it doesn’t feel like prime time.  The market has been quieter than we had anticipated at the beginning of the year.  The greater Phoenix market has drifted into a balance – as homes for sale have slowly accumulated and demand has waned under the pressure of rising interest rates. 

The numbers below provided by Tom Ruff of the Stat as well as the Cromford Report –  confirm 2024 first quarter lackluster numbers:   

• In the first quarter, demand was approximately 5% lower year over year. (Note: 2023 was a very low volume market historically)

• In February and March, in terms of sales per day, there were 15 fewer sales per day this year compared to last.

• Demand is down approximately 26.02% from the first quarter of 2020. (pre-COVID)

• Sales volume for Q1 2024 is down 31.61% from Q1 2021. (COVID buying frenzy)

• The median sales price is 5.65% higher year over year, home prices are stable.

• Listings under contract are only down 6% compared to last year, but active listings are up 26%.

• Flip sales are down 74% from 2 years ago and at a level comparable to 2015.

The luxury market is still holding up (although also not as strong as last year) as it is generally unaffected by interest rates.  Additionally, builders have grown their market share by offering lower than market rates (i.e. bulk buying loan money).  That strategy is paying off as new home market share is now 22.6%, while only 3 years ago they were less than 15% of the total units sold in residential homes & townhouse/condo sales.

Takeaways:  Sellers now are competing again for buyers especially against new builds and should look to their REALTOR® for advice on how to maximize time on market and net.  Prices are holding at the moment.

Buyers should be relieved to see more home choices than in years accompanied by stable pricing.  Interest rate concerns can be addressed by rate buy downs (ask us!) or by purchasing a new build.

Whether buyer or seller – a quiet market does present opportunities.  Contact us for ways to maximize your dollars.

Russell & Wendy Shaw

(mostly Wendy)

𝗧𝗵𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗯𝘆 𝘁𝗵𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀

Now that the peak home buying season is upon us – we have a little more data on how the market is performing.  No pearl clutching headlines here, but still, we find it interesting (accusations of being a geek might be valid) and hope you will as well.

𝗦𝘂𝗽𝗽𝗹𝘆 – Supply is up 14% over last year but still 31% below normal according to the Cromford Report.  Compare the following numbers just for contrast.  We have as of the writing of this report – 16,886 active listings vs. 4400 just 2 years ago.  Wow.  Below normal looks pretty normal by comparison. As usual though, the numbers need further examination. It is the top end of the market is where the supply is plentiful.  Homes over 10 million currently have a2.6 year supply. Between 5-10 million – 16 months supply.  Between 3-5 million, 8 months of supply.  Like price, location also determines supply.  Outlying areas have more supply such as Buckeye, Maricopa and Casa Grande.  Butthat shifts the closer homes are to the city center as the Cromford Report explains:” … many cities that are closer to Phoenix and are dominated by homes under $1 million still have a tight supply and buyers outnumber sellers in most of these areas.” The moral:  marketplaces are really a combination of micro markets that must be independently evaluated.

𝗗𝗲𝗺𝗮𝗻𝗱 – Not shockingly, higher interest rates are keeping buyer demand below normal levels. Depending on one’s view – this is not entirely bad news.  Why?  Price. With supply and demand somewhat in abeyance, pricing is fairlystable.    As the Cromford Report shares:

“…Those who have been keeping these updates over the past year have probably noticed that the median sales price has barely moved for 10 months. Starting at $440,000 from June-July 2023, stagnating at $435,000 from September-December, dropping to $430,000 from January-February 2024, and now back up to $441,000 in March. While the current appreciation rate from last March measures +5.8%, over the next 2 months this will start to move closer to 3%, which is in line with the rate of inflation. This 10-month stagnation in price, which has endured erratic mortgage rates ranging from 7-8%, has allowed some breathing room for annual incomes to catch up to prices”

𝗦𝘂𝗺𝗺𝗮𝗿𝘆

“There is still no sign of a market crash in the short or medium term, but the market is struggling to gain traction. The healthy amount of incoming supply is not quite matched by a small improvement in demand and the balance between sellers and buyers only favors sellers by a small amount when considering the market as a whole. In many sectors of the market, buyers have more negotiating room, even though, judging by the recent price movements, most of them do not seem to realize this..”

If the last few years have taught us nothing else – markets can shift sometimes unexpectedly.  As always, we will keep you informed when we see it.

Russell & Wendy Shaw

(Mostly Wendy)