Sales activity in the local real estate market was slower than anticipated in September, with overall inventory (# of homes for sale) continuing to increase. In other words, a lot more homes being listed for sale than selling.

Having said that, buyers for specific homes are out there – it’s just that buyers have more negotiating power than 18 months ago. We did see a $2 million home sale in our market in September, but it took a number of months on market and significant price adjustments to get the deal done.

I prefer to use median pricing vs average pricing to give a more accurate picture of where the market is headed – especially given low sales activity (median is where half the houses sell for less and half sell for more).

Median pricing dropped another 3.4% between August and September. So, there has definitely been no bump in pricing going into the Fall as we often expect. Quite the opposite. In fact, the market has given back all the gains from earlier this year.

The latest higher than expected inflation number of 4% also means higher interest rates may be around longer than some have thought. Between increasing inventory and continuing higher rates, downward pressure on pricing will persist. The headwinds our market is experiencing will continue into 2024.

One observation I’m going to point out is the number of offers we are seeing that are conditional on sale of buyers’ property. Certainly a result of the market we are currently in, but more challenging and frustrating for sellers that are trying to buy themselves.

This extends the selling process and tests everyone’s patience. And sometimes leads to disappointment when the buyer’s home doesn’t sell in a timely manner. But be patient – you will more often than not be rewarded.

If you are selling in this market, correct pricing and marketing strategy is more important than ever. And so is the realtor you hire.

For those who are thinking of selling sometime in the next 6 months, get outside pictures of your home taken now just in case. Better than snow filled pictures and barren trees. This is a free, no obligation service we provide.

For an honest discussion and advice on your real estate needs, call me anytime at 519-766-3716.

Until next month, take care.

George