Real Estate Forecast: It’s Kinda Like the Local Weather Report for the Past Week
Updated: Apr 7
I’m trying to tie in the weather forecast to the real estate blog this week. Since we’re experiencing like-kind patterns, I hope I do this justice!
Missing in action: home sellers! The number of homes for sale or housing inventory is off about 30+% year to date (YTD). Meaning that home sellers are not motivated to move right now.
Also MIA are homebuyers. There are still a lot of homebuyers who are on the sidelines. The buyers whom I’ve spoken with or met are “waiting” to see if mortgage rates are going to go down or continue an upward trend.
I liken this term to the affordability index for homebuyers. Rates have dampened buyers’ spirits. Much like an overcast weather pattern. After a few days, I am really over it and missing the warmth of the sun/opportunity to get back outside. Or in the case of a homebuyer, go out and find a new home that is within your means right now.
Interest rates have gone up in the past 7 days, now sitting at above 6% to 6.5%. Part of this can be attributed to stronger retails sales and employment figures from earlier this month; however, questions remain about whether this data is real or will it be adjusted?
When a local home hits the market, if it’s prepared right, priced right and positioned properly within the current market, I’m seeing strong interest and, in many cases, multiple offers. Not crazy offers like we may have had in the past couple of years, but good strong offers that are well thought out and financially viable.
Blowing away the older listings. I’ve noticed that some of the homes that were left sitting on the market from last year (80+ days on market) are now going pending. The days on market (DOM) averages are finally coming down. Good news for those sellers who have probably been disheartened through late last year’s market shift.
I’m always encouraged when I see the many construction trucks, repair persons, landscapers and workers who are parked along various streets in our community. I think it’s refreshing to get your home updated or at least freshened up. I also like it when the neighbors stop by our open houses “just to get ideas,” which leads to bigger conversations about changing and creating the space, flow and feel of their homes with cosmetic updates and new concepts. Open houses are a great way to get ideas and I hope many of you feel free to stop by anytime you see my signs on the street!
The weather pattern this month is certainly not what we’re used to in the past few years where it was predictable for the most part. Very much like the previous real estate market had been prior to the pandemic timeframe … mild temperatures, low swings or moderate changes and predictable patterns that you can count on, make plans for, and enjoy. I am hopeful that we get to this place; however, I don’t see it in the near term with all the shifting patterns of economic news.
Oh, the weather outside is… Got this song stuck in my head now – ugh!