The Winter market is here

Highlights:
1) Mortgage rate roller coaster so far this year. Recent increases. Currently at late 2023 levels
2) Local housing inventory above historic averages 
3) Inventory levels near historic annual peak
4) Decent enough demand to keep absorption rates in normal/balanced market territory 
5) Homes that prepare, price right, and position correctly in the market, successfully sell 

One of my one liners is that there is a large inventory of mostly overpriced homes that are sitting and the sellers that know what they are doing successfully sell. On the other side of that there is a lot of opportunity for savvy buyers.

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. Successfully selling a home involves an analytical approach to pricing into local buyer demand. 

Local housing inventory in higher than I have seen it since I started following these numbers. Need to look back well into the 2010's to find another 15,000+ listing WFRMLS active inventory. The upward trend is likely to continue through early November. High annual water mark for inventory is typically in early November with a trough when the flowers come out in the Spring.  What that means is that there are plenty of available homes to choose from. And the demand is there to scoop up accurately priced homes. Highlighting "accurately priced" because the market is filled with overpriced listings. 

There is so much pent up demand (and supply). 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. Lifestyle, after a period of time, becomes the winning consideration over artificial ceilings to interest rates that make sense. 

Across the board for the Wasatch Front counties, inventory/supply ranges from four months and six months. By that measure alone it is a balanced market. In the current inventory we are seeing many price reductions. In Salt Lake County, 39.6% of the current inventory reduced offering price in the last 30 days. Slight increase from recent months. Roughly half (54.7%) of the homes currently on the market in Salt Lake County reduced price at least once. 

30 year mortgages are now at 7.40% (Freddie Mac). This means that the most qualified borrowers can get rates in the low 6's. These numbers are posted every Thursday. The most savvy buyers are negotiating interest rate buydowns tailored to ideal monthly payment.  

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