Decreased mortgage rates boost affordability. Plenty of available homes to choose from. Decent demand keeping market normal/advantage sellers

Highlights:
1) Increased affordability. 30 year fixed currently at an 11 month low.
2) 2025 annual/seasonal inventory increase began in February. Since June, in the historically normal range for the first time in quite some time. Interestingly, in the past couple of weeks, inventory levels are flat/down slightly, which is unusual this time of year.
-Buyers finally have choices and opportunities that were lacking in the past half decade.
3) Demand high enough to keep absorption rates at roughly 2.5 and 4.5 months (balanced/advantage sellers market).
4) Active, but very unique market. What is unique is that some homes go gangbusters and receive multiple offers while others sit on market or don't ultimately sell (results vary widely across neighborhoods and price brackets). 

#1 is the big headline these days. There is some mention of #2. #3 is the little known fact of the current market. #4 above to a great one liner description of current market conditions. 

This is such a unique market. The market is active, but behaviors and perceptions haven't changed. The comical way of describing this is that sellers think it is 2021, buyers think it is 2008, and the skilled Realtor's job is to close that gap.

On the supply side. The most common market commentary that I've heard in the last month from consumers is "seeing a lot of yard signs" or "there are a lot of homes on the market." Basically a supply side argument for the market slowing. Now this is a great observation. Inventory is increasing since February. Welcome to Spring/Summer my friends. And yes, inventory is increasing as it basically always does this time of year and that will likely continue to be the case until October/November. Inventory, by historic standards is in the range of "normal" for the first time since the late 2010's. By the standards of the last half decade there is plenty to choose from. Would be buyers, that need to sell first, can finally feel confident in finding their next home. Interestingly, in the past couple of weeks, inventory levels are flat/down slightly, which is unusual this time of year. 

Putting supply and demand together, we have the makings for a very exciting Spring and Summer. Many savvy people accomplishing goals that they may have put off for a long time. I would argue that there is A LOT of pent up demand in the market from the past several years. A huge amount of people that want to make a move but feel like they can't afford it and/or they feel handcuffed by their current advantageous interest rate. Decreased mortgage rates are already opening up a lot of opportunities. 

Across the board for the Wasatch Front counties, inventory/supply ranges from two and a half months and four months. By that measure alone it is a balanced sellers market. Some homes go gangbusters multiple offers (some neighborhood and price brackets have been super competitive with multiple offer situations being common) while others sit on market. In the current inventory we are seeing some price reductions. In Salt Lake County, 13.9% of the current inventory reduced offering price in the last 7 days and 37.1% of the current inventory reduced offering price in the last 30 days. More than half (51.0%) of the homes currently on the market in Salt Lake County reduced price at least once. 

Expired listings (homes that listed and did not sell) happen in every market. In the last 30 days there were 135 Expireds in Salt Lake County, 127 Expireds in Utah County, and 27 Expireds in Davis County. Even in a sellers market, not every listing sells. 

Buyers ARE BUYING homes in the current mortgage environment. 30 year mortgages are now at 6.63% (Freddie Mac). These numbers are posted every Thursday. 

If you are having thoughts of moving, it might benefit you to have a casual conversation about what is possible in this market. Pro tip, selling and buying at the same time without moving twice IS POSSIBLE in the current market. Schedule a strategy session HERE