Seller’s Market – but for how long?
The current market has shifted to the seller’s favor once again. But this is not your mama’s market (i.e. the 2022 unbeatable spring market). Last spring we were in an overheated seller’s market – fueled by demand, low supply and low interest rates – it looked unstoppable. Yet with interest rates more than doubling, by fourth quarter both supply and demand were in a deep freeze. We ended 2022 in a buyer’s market.
Fast forward to February 2023 – and the market is now a gentle seller’s market. What?! In what was literally the shortest buyer market ever, we have shifted once again. Supply has remained stubbornly low. Interest rates have drifted down a bit – and buyers have had time to acclimate to interest rate sticker shock. Hence, demand has risen.
To summarize the recent rise of listings under contract compared to last year, no one is better than Michael Orr of the Cromford Report: “We remain 27% below the count on February 13, 2022, so we are really back to normal rather than the wild and crazy market we had 12 months ago.”
It’s not a time for buyers or sellers to take market conditions for granted. If the last year proved anything it is that markets can change quickly. For an analysis in your particular area, contact us. This is a market to watch closely.
Russell & Wendy Shaw