Shane’s Market Insights
As we close in on the end of 2023, we are seeing the same trends we have seen all year, with one exception – there is a lot more inventory on the market.
In 2022, the average month supply of inventory was 1.88 months. In the 4th quarter of this year, we are at 6.23 months of inventory. That’s a substantial gain and that trend will most likely continue (and edge prices lower).
Average days on market (DOM) have increased this year by 24%, to 117 DOM. The number of closed sales in our entire MLS is down 33% in the 4th quarter so far, and the pending volume is down a staggering 62%!
What Does That Mean for Sellers?
Buyers have become a little more scarce with the higher interest rates and market uncertainty. That means Sellers need to price their homes competitively in order to appeal to a limited number of buyers.
What Does That Mean for Buyers?
It’s a good time if you are a buyer. Some sellers are willing to buy down interest points at closing. This is a great negotiating technique and could save you thousands of dollars in interest over time. Some lenders and financial institutions feel like the Federal Reserve will start lowering rates by next spring. If this is the case, it could jumpstart sales and get us in a good position for our traditionally higher volume months in 2024.