November Housing Market Update
November's market update brings more of the same from last month. Having said that, this is an update that you'll want to read.
Here is the summary:
New Listings = Lower by 12% from last month, no surprise here
Available Listings = Small increase 5% more listings available on the market than last month.
Pending Sales (Buyer Demand) = The nosedive is continuing, down by half since August.
Days on Market = Increased from 25 days to 27 on average...
Price = Median price dropped from $1,075,000 to $1,050,000
Here is the real story:
There is no surprise that new inventory is decreasing; we expect to see that this time of year. Yet the conversations we're having this year are a bit different than we usually have this time of the year.
Most sellers would prefer not to sell during the holiday season for obvious reasons. This year, we're hearing more sellers deciding not to sell because there is a lack of motivation. Most who 'want' to move are hesitating because they don't have a strong reason to move. Those who 'need' to move are making it happen, but there are a lot fewer people in that boat right now.
We're still having the same conversation of "where would I go?" with sellers who also would need to buy. There is a whole strategy to that, but we've covered that in another article How to Stay in the Market, so I won't cover it here.
Expect another large drop-off next month and a rebound after the new year. There are a lot of listings sitting and waiting for the new year to hit the market. Same as every year.
With fewer homes coming to the market, you wouldn't expect to see this increase very much, and it hasn't. A 5% increase in available listings on the market brings an opportunity for buyers. It also shows that we're in a steady market.
More homes available for buyers to choose from brings a great opportunity for buyers to get a winter deal.
Fewer people are buying now than during the shutdown of the pandemic. When the world shut down in March of 2020, there were 1,300 homes that sold that following month.
Last month, we only had 993 homes go under contract. This is the lowest number in recorded history. It is half as many pending sales as we saw just two months ago.
Pending sales equates to buyer demand. We expect to see this lower in the winter, but this is a huge drop.
Days on Market
A slight increase in days on market from an average of 25 to 27 doesn't change much of anything. Regardless of what we see happening in the market, we would expect to see this number increase this time of year.
"Looks good and priced right" sells fast, often with multiple offers.
With a rather large pullback in interest rates, I wouldn't be surprised to see this number decrease in December.
With buyer demand falling off a cliff, you would think that prices were next to drop... Prices have officially dropped below the peak of last year... by $10,000.
From last month, we saw the median price drop from $1,075,000 to $1,050,000. Just a 2.4% drop in prices from last month.
Remember, the peak of pricing in 2020 was at $1,060,000. Meaning that prices now are just barely below where they were at the peak. With 7%+ interest rates, we've seen prices remain high.
We have seen interest rates dance between 7-8% for the last few months, and this pullback might spur a lot of buyers. We are talking to a ton of buyers who are scared from their experience shopping for a home in 2020-2021. They don't want to go back to competing in a bidding war.
If you've been waiting for something to happen in the market, this might be your sign. Do yourself a favor and reach out sooner than later. It doesn't cost you anything except your time.
PS - If you're also selling, check how much cash you'd be left with after selling with this free calculator.
Also, you should ask about our 'Buy Before you Sell' program.