What’s Happening in the Real Estate Market This Summer?

What’s The Summer Market Doing?

As we head further into the summer real estate market, tons of people are asking:

“What’s going on in the market right now?”

I get it, there’s a great deal of mixed information on the market today, and if you’re looking to move in the near future, you want to be informed about what’s happening with real estate.

The truth is that home prices are still high and rising in most areas in our region; however we are seeing some weakness in selected markets around the nation - especially those ‘Covid’ move destinations like Texas and Florida.

Here are three metrics we look at to help better understand our market and its opportunities:

Continued Low Inventory Driving Prices Higher

Right now, a lot of people who would otherwise sell their homes are staying put because they have a low interest rate locked in with their current mortgage. As a result, inventory is incredibly low, And combined with steady buyer demand, prices continue to rise. Median home price from June this year, it’s up 7% year-over-year! So, this continues to be a great market for sellers, and an opportunity for buyers to build equity so long as they get into the market sooner rather than later.

Motivated Buyers Are Moving Forward

While many buyers took a break waiting for interest rates to drop after their rise in 2022, after two years, they are recognizing rates are not dropping significantly anytime soon, and it’s time to move forward in life. These buyers are coming back to the market Along with the typical flow of new buyers, creating significant demand for homes and a competitive market similar to what we saw in 2017 through 2019.

Looking at list to sale price ratio, you can see we are similar to last year, though softening a bit, which is actually helping the market by attracting more buyers who have been shy of significant competition.

Pricing & Marketing Strategies Are Still Critical

This low inventory, steady demand environment isn’t a blank check for sellers, as we are finding more listings taking longer to sell and experiencing price reductions when they overestimate demand & value or neglect ideal preparations for their sale. We see this with a creep up in days on market:

A great pricing and marketing strategy, starting from the preparation of your home for the market, is key to being on the winning side of this market and optimizing your price and terms. We are experts in helping clients understand the market, get the best return on investment for preparations of their home, and negotiation strategies to get the best price, whether working with 10 competitive offers or getting the best deal after 30 days on market.

This is a Summer of opportunities. The market continues to be strong, interest rates are steady and more homes are continuing to come to market. If you’re interested in selling your home, whether to move up, down, or around town, give us a call, and we can help you find your opportunity.