In previous weeks, we’ve talked about how the housing market would be showing signs this Fall of shifting from heavily favoring sellers to a more balanced market between sellers and buyers.
One of the signs of that would be the Fed beginning to reduce rates in September. All indicators that I can see indicate a possible 1/4 to 1/2 drop in interest rates. Another indicator is an increase in new listings for houses for sale. This article gives all the details on the post-pandemic period’s highest inventory increase in Atlanta. The same thing is happening in MA.
The rise in inventory means buyers will have more choices and now sellers will have to compete more for buyers’ attention. Recently, those buyers who haven’t been priced out of the market by interest rate increases, have had to do some crazy things to attract sellers’ attention to their offers, like waiving the home inspection, offering crazy-high offer amounts, waiving home sale contingencies, etc. Over the past few years, sellers have been spoiled. A cardboard box in the woods would fetch multiple offers in the first weekend the listing was live. Now, houses linger a bit longer while the right buyer is sought. Years ago, sellers were offering incentives to buyers just to get them in the door to a showing, like seller paid home warranties, Improvements like gutter guards, security systems, back up generators, smart home tech and more. Sellers were even offering financial incentives to buyers like offering to pay the buyers points or even closing costs.
We’re not there yet and hopefully we won’t be for a while. Sellers are now having to wait for buyers to even check out their homes as more and more listings are competing for the attention of a growing pool of buyers. IMHO, the market is shifting back into balance between buyers and sellers. It still favors sellers now, but I’m still predicting a much more favorable market for buyers by Spring 2024… provided nothing crazy or unforeseen happens, like a Presidential Election or a regional war or two, seismic, generational changes to Realtor compensation, market crash, You know, rare and unlikely events like that. 🙂
Have Fun!
Lew McConkey,
Brook Realty, Serving Whitman Hanson & Surrounding Towns
(781)252-9789
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