FALL IS UPON US
Pumpkin spiced lattes, football tailgates, delta variant, and golf scramble tournaments!
We can keep this one short and sweet, ya’ll. I was correct on all my predictions from last month (I mean, what did you expect?)
MY PREDICTIONS LAST MONTH:
- We will see a big drop in Units Sold. Like I said, it has been a slow few weeks with buyer activity.
- I predict we see an increase in Active Inventory. With less buyer activity and the influx in listings from last month, we should see some homes start to sit on the market.
- We will see more price drops on listed homes. Sellers are a little greedy and thinking they are still running the show. Buyer’s aren’t as eager to get in a home that’s not perfect.
DROP IN BUYER CONFIDENCE
With the lack of buyer activity, we knew we were going to see a drop in units sold. We dropped almost 14% from the prior month. Because of that slowdown in unit movement, we also saw an increase in active inventory. You would think after seeing these stats that our median price or at least price/sq ft would be dropping. It hasn’t. In fact, price/sq ft has lifted a little over the last 30 days. Even with the slight lift in price/sq ft, we ended up seeing a lot more price reductions on our active inventory. This is an indication that buyers are no longer paying whatever the seller wants. I like this.
I really like the market moving to a more balanced situation. I think buyer confidence will start to bounce back before our cyclical holiday season slow-down and hopefully lead to a more “normal” market in 2022. The last quarter of 2021 should be exciting to watch with rates still at record lows and our absorption rate nearly at one month.
My predictions for the next couple months:
• Buyers will be more active before the winter season. We will start to see the Units Sold stat line move up a little. Maybe not next month, but we should definitely see it in October.
• Prices will remain the same, maybe drop a little. They will most definitely drop in the winter months (December, January), but we might see a small dip before then.