This week’s stats show how the market is shifting, as the number of both price decreases and properties with cancelled contracts took a big jump up. Price changes are the highest since the summer of 2014, when price drops were even higher than they were this week. I added the metric for ‘Back on Market’ this week because I also noticed a dramatic increase there, to the highest level since April 2015. There are many reasons for a property to come back on the market but it could be a sign that some buyers are no longer able to get the financing they need for the sale price due to rising interest rates… or that some buyers are getting cold feet. These are signs the market is shifting… but notice there wasn’t much change in the number of multiple offers. That is because there is still an inventory shortage so there is still competition for good properties that are priced right… but buyers are more cautious about making high offers just to get a property. They want it to be the right home for them, at a price that doesn’t feel too high to begin with.
Showings didn’t drop off this week, likely buoyed by all the price drops. This is the time to mark homes you like that are just beyond your budget… there may come a time when the price drops to within your budget. Of course, that price drop could also incite multiple offers.
Pending sales are rising, while coming soon listing data is pretty lackluster… don’t expect new listings to be jumping up soon.
This increase in price drops could be a window of opportunity for buyers. Don’t think of it as a sign that the market is crashing, just readjusting back to reality… the trajectory we were on was unsustainable. Check out the infographic below from our blog at Keeping Current Matters.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
