The month of January almost always reflects the New Years Resolutions of sellers to put their home on their market with a large increase in supply. February is the reaction to that supply and also the fulfillment of buyer’s resolutions to purchase a property. Since a closing period on a real estate transaction is 30-45 days, buyer activity in January reflects in February closings. Closings were up by 10% last month. Pending sales are up as well following a normal seasonal trend as the sales increase to the historically busy spring and summer market.
Average prices dropped by more than $24,000. This is a strong indicator of seller motivation from January. Sellers were willing to reduce their price to get their property sold. And many sellers entered the market motivated to sell in January with a home “right-priced” which impacts the average sales price in February when they closed.
Supply dropped by a tiny bit from 4 months of inventory to 3.9. But, more homes were added in January of 2024 than any other single month of 2023.
Jenny King of Legendary Mortgage shared insights with us from the mortgage world. Mid-February saw a rate decrease and the hopes of a downward trend in rates, however, the fed did not reduce rates and they inched their way right back up at the beginning of March. This means that if buyers can purchase based on rates where they are right now, they should do that because we don't know what is going to happen and you shouldn't miss your opportunity waiting on rates to come down while home prices continue to increase.
Overall, we feel March is going to be a great month for sellers to enjoy high prices and great equity. Sellers, be prepared to negotiate and listen to your Realtor when they tell you it’s time for a price drop. Buyers, you have time to see properties and you should have more inventory of homes to view. Take advantage of that to find the right property for you and negotiate with the seller. But make a good offer based on comparable properties. March has been and is going to be a great month!
Comments (0)
Be the first to comment on this post!
Post a Comment