Hi, this is Jack Ma w/ Jack Ma Real Estate Group with Century 21 Masters in Diamond Bar. Welcome to my video.
Have you heard that the real estate market is changing? Real Estate had been a Sellers Market pretty much since 2012 when the market recover from the crash. It’s been almost 20 years since we last saw a normal market. What are some of the things we will see in a normal real estate market? Let’s find out in this video.
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What are some of the signs of a changing market? I made a list of some things we are seeing….
The number of homes for sale is growing quickly – It’s all about supply and demand. We have seen the number of homes listed for sale almost double compared to the beginning of the year.
Buyers have more choices – With the housing inventory increasing rapidly, now buyers have more choices. It is still a seller’s market but it is a much cooler seller’s market than it was in 2020-2021. Buyers are facing significantly less competition on properties.
Days on market for listings are extending – With the inventory increase and buyers having more choices, the marketing time of properties went from 7-10 days to now 2-3 weeks.
Price Reduction is back in Play – With more homes to choose from, buyers are more careful with what they are buying. If a house is not showing value, buyer will buy the other homes that have a better-perceived value.
Dramatic reduction in COVID Buyers – with COVID and working remotely, a lot of buyers were created as a result of moving away from the city to the suburbs.
Fluctuating Interest Rate – Many people didn’t know that but the interest rate was at 21% in June of 1981. The mortgage rate during the 2006 housing boom was about 7%. Interest rates went from 3% to now 5.25% it is still low relative to historic values.
Dramatically fewer transactions – With housing becoming more unaffordable, many buyers are either priced out of the market or decided to sit on the sideline. The projected number of transactions in the US was adjusted from 6.3 million to 5.3 million.
Fewer Offers – With more people trying to sell their homes and fewer people buying, the average number of offers received per listing went down noticeably.
Prices are flattening out – With buyers facing less competition and having more choice, they are no longer as aggressive with their offer price
Listings will expire – No longer are the days that any and all listings are selling. If a house for sale is not showing value, the buyer will skip it and opt to purchase another home.
For Sale By Owners are not selling Quickly either – With % of the listing sold went from 45% in march to now 25%, homes are not selling as easy as before.
Thats what we are seeing on the market right now as we moved from a sellers market towards a normal
market.
