Opinion: Chris' Thoughts
While national headlines may suggest a softening housing market, our local real estate landscape remains robust. Contrary to the broader market trend, which is largely influenced by the top 50 metro areas, our market has historically exhibited greater stability, earning its reputation as a "mutual fund" for real estate investment—a place where consistent returns are prioritized over rapid appreciation.
Two key factors will continue to shape our local market in the coming quarters:
1. Interest Rate Fluctuations:
The Federal Reserve’s recent interest rate cuts are expected to translate into lower mortgage rates. However, this process may be slower than some buyers anticipate. Many older homeowners are hesitant to downsize due to the current interest rates, preferring to wait for rates to drop further to avoid higher monthly payments.
2. Inventory Levels:
Despite initial signs of increased housing inventory at the beginning of the year, the third-quarter data shows that supply remains relatively unchanged compared to last year. Strong demand coupled with limited supply continues to push prices upward.
Multiple Offers and Market Dynamics:
While the frenzied market conditions of the COVID-19 era have subsided, our market remains highly competitive. While multiple offers, no inspections, no mortgage contingency, and appraisal gap coverages are less common, we have an average of 99.5% list to sales price, which translates to at least a third of the houses selling over asking price.
Conclusion:
Contrary to the national narrative, our real estate market remains strong for sellers and challenging for buyers. While the market may not be as competitive as it was during the peak of the pandemic, it's still a seller's market. Buyers should be prepared to act quickly and potentially offer above asking price for desirable properties.
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