If PIVOT was the word of the year for 2020, and CRAZY was the word for 2021, then SHIFT is the word for 2022.
In the last 12 years I’ve seen multiple real estate market Shifts - and they always seem to happen in a matter of a couple weeks.
This time around it seemed like we were starting the 2021 craziness all over again and then BOOM 💥 interest rates began rising and a whole new market atmosphere was upon us.
Where has this market shift put us today?
➡️ Pending Contracts are down 12% compared with April 2021. This speaks to the change in demand (IE there is LESS demand to purchase than there was a year ago). But this is a new stat, so we must wait a few months to see if home buyers will adjust and pick back up or if this is the new ongoing trend.
➡️ There were also fewer Sold homes this April compared with last year. Though it was lower, we are still on the low side of normal for the past 10 years. Being that we have fewer Pending contracts currently, we’ll likely continue this trend in May.
➡️ Multiple Offers aren’t what they once were…55% of homes are still getting multiple offers, but just a few months ago 72% of homes had multiple offers. Additionally, according to a local poll, 52% of homes are getting 1-2 offers, 29% are getting 3-4 offers, 8% are getting 0 offers, and 11% are getting 5+ offers. It simply means competition is thinning and sellers can’t expect 5-10+ offers. On the flip side, as a buyer you will have a bit less competition.
➡️ Prices are still going up. BUT it has decelerated. From 2020 to 2021 prices went up 20%+, versus 15% in the last 12 months. That’s still a lot of growth! But growth is slowing.
So what does all this mean??
1️⃣ The market is calming…becoming a bit more sane and balanced.
2️⃣ Buyers have more opportunities and less competition. Not NO competition. But less.
3️⃣ People looking to Buy & Sell at the same time have a WAY better chance of making that happen without the hassle of a double move.
4️⃣ Sellers need to be more “Listing Price” conscious than ever. As the market continues to soften sellers are better off listing according to comparable sales than trying to “push” the market. “Pushing” the market could mean no offers, quickly becoming a “stale” listing and ultimately selling for less than the recommended market value first presented.
This was a TON of info! Thank you for reading and watching.