For the first time this year, prices are up YoY. We’ve been level-pegging for the past few months, but September finally pushed ahead. September was the first month since June where prices didn’t decline MoM. This sounds very rosy for sellers, but it’s feeling much slower in the market right now than the September numbers show.
|
Year-over-Year (YoY) |
Month-over-Month (MoM) |
|
|
Homes for Sale |
-16% |
+1% |
|
New Listings |
-23% |
-2% |
|
Homes in Escrow |
-13% |
-11% |
|
Closed Sales |
-21% |
-19% |
|
Median Sale Price |
+3% |
Flat |
The biggest MoM swing was closed sales and pending sales. In August, closed sales were up 10%, and pending sales were up 4%. In September, they were both noticeably down. The amount of homes for sale has been relatively flat for the past four months, with little incentive for homeowners to sell as rates climb.
Rates
Rates are the highest they’ve been since 2000, and it appears we’ve finally hit a tipping point, as we’re seeing a noticeable slowdown in buyer activity. At the beginning of the year, most experts predicted rates to be lower by now. However, the ongoing battle with inflation has dashed those hopes. There is chatter brewing that a slight price dip is on the horizon, and with the holiday slowdown season around the corner, the numbers could reflect that over the coming months.
Get Ready to Lowball
If a property you’ve had your eyes on hasn’t sold, now is the time to start considering lowballing the seller. There will be sellers out there who want to sell before the year ends but aren’t prepared to lower the price. They want the buyer to come to them. I had success with a buyer and this tactic last year, and they purchased the home in a prime location for $500k less than the original asking price. Reach out if you want suggestions for properties to go after.
S-Corp or LLC Buyers
If you pay yourself through a S-Corp or LLC, now is the time to speak with your CPA. Let them know you want to buy a house and what advice they can provide to ensure you qualify for the loan you need. Even better still, connect your CPA with your lender so everyone is on the same page. Reach out if you’re unsure of what questions to ask.
Wet Winter
It’s anticipated to be another wet winter, and we all know how much that wreaked havoc on homes last winter. If you need roofer recommendations, reach out, and I can send you a few.
