It Was A Roller Coaster Ride…
If you look at the Active vs. Sold chart, for twenty consecutive months we have seen an inversion where the number of homes available on the first day of the month is less than the number sold in the prior month. Of course, this spawned the kind of market you may have heard about. January through March of 2022, we saw it all with bidding wars, cash offers way over asking and appraisal and inspection waivers. May was one of the top three months for closings ever. However, in April, the roller coaster started to descend and by June the twenty month inversion had ended. That corresponds closely with interest rates that started to rise in late March and continued their rise into July. Closings lag 30 to 60 days behind when buyers are making their decision and locking in their interest rate. The first jump in rates seemed to nudge some buyers into making a decision but subsequent increases discouraged buyers who then pulled back.
Does it mean, we are now in a Buyer’s Market. No, not at all. It just means that the unprecedented Seller’s Market of January through March of 2022 has moderated into a more typical Seller’s Market. Inventory has risen to a level last seen in July of 2020. Finally, buyers have some choices.
At the Bridge Team, over the last 41 years, we have seen all kinds of markets. If we can put that expertise to work for you to help you make the most of this real estate market, please don’t hesitate to be in touch.
Your call to The Bridge Team at 303-331-4589 for any of your real estate questions will be warmly received.