08 Oct Time to Go to the Tape
It’s Autumn…let’s look at the overall market conditions in Homer and the surrounding area and keep it at a high level. I’ll try not to get too nerdy!
I pulled data and corresponding charts from the MLS, as well as talked to local mortgage and title companies, to affirm where I feel the market resides for buyers and sellers.
Let’s start with listings and absorption rate (how long it would take to sell the supply of homes on the market).
From the above, we see the volume of properties listed in the summer months were up, but sales did not match inventory. We now see a glut of inventory (see absorption rate graph above). This could indicate high original listing prices and/or property types not matching market demands. We can expect some cancellations or expirations of listings, which is not entirely unexpected as we see this trend in some fashion on a seasonal basis.
Let’s check out List pricing to Sold.
There is a significant gap in Older Active vs New Active listing price in Q4 2023. New Active listings appear to be more in tune with the market demand. Looks like sellers have come down in price to meet where the buyers are.
So, what does that mean for Sellers and Buyers?
Sellers: The higher listing prices vs. Sold that were seen at the beginning of the calendar year were not there this summer. Prospective buyers were wary of price as inventory increased. It’s vital to take heed to the Comparative Market Analysis and your representative’s advice before listing. If your property is trending towards lesser “eyeballs”, talk to your representative about the next steps.
Buyers: We are seeing a more balanced market. Negotiations on lowering pricing will be more difficult but inventory is high…for now. Expect some of this inventory to not be de-listed in the coming months. If you have a property you MUST have, best to move on it now.
For either Buyers or Sellers looking for experienced guidance, talk to your local Realtor ®, preferably me!
Let me Guide You Home
This article is the author’s opinion and does not represent the views of the author’s employer, organization, or other group or individual. Do your own due diligence and refer to the appropriate professionals for further assistance.
