January 2019 Market Update
The January market data is in and the shift that started in November 2017 & peaked in May 2018, has really started to turn around.
The good news is that sellers and now buyers have started to come back!
For more than 4 months, the number of listings has gone down. Normally you would expect home prices to go up as a result of a lower inventory, however that has not happened here. The buyers are picky; they have more choices than they've had since 2011 and they're taking their time...
David drives home the reality that you cannot set a price based on what you want, based on what you paid for it or what you need to get out of it. Market value is determined buy what potential buyers are willing to pay.
We've seen prices come down significantly. Now that the comps are now reflecting the new reality of market value, properly priced homes are selling relatively quickly.
The overall Days on Market is now 69 days and a price appreciation of 4.2%, but prices of homes from $600K - $2M has actually gone down and so have those under $600K. The reason that prices have gone up on paper, are because there's more transactions over $1M, which are making the prices appear to have appreciated.
In the past few years, you had limited inventory, high buyer demand and low interest rates, thus buyers competing with each other to raise prices. Now that the inventory has increased, you now have sellers competing with each other to reduce prices.
We're still seeing huge numbers of listings coming off the market unsold; Withdrawn, Cancelled or Expired and that's helping to clear out the inventory of overpriced homes.
Watch as David Bartels explains the trends and interprets what the data means for Sellers, as well as Buyers!