Even as home prices continue to rise, some experts have spotted signs that the housing market is beginning to improve in some locations.
Sellers are cutting prices. Bidding wars are over may be over, inventory is rising, and more sellers are realizing that they’re not at the same advantage as they were three years ago. Around 25% of today’s sellers have lowered their initial price. Around 30% of the nation’s home builders are also cutting prices.
Homes are on the market longer. Around 65% of homes that were on the market last month have been listed for at least 30 days. This is up from 59.6% from a year ago.
Buyers are pickier. There have been instances of buyers backing out of a purchase even after closing is scheduled. This is a sign that buyers are getting more selective, and that sellers may need to reconsider prices.
Sellers have competition. If your territory is seeing an increase in listings, this translates to good news for buyers. Unsold inventory has grown to a 4.1-month supply, which is a one-month increase from last year.
Inventory is up compared to a year ago. In the Edgewood 87015 zip code area, the inventory went from .8 months a year ago to 3.6 months today. In Sandia Park 87047 zip code, inventory went from 1.5 months to 5.2 months, in Tijeras 87059 zip code the inventory went from 1 month to 4 months today and in Cedar Crest 87008 zip code the inventory went from1 month a year ago to 3.9 months today.
This along with houses staying on the market longer and sellers lowering prices and/or offering buyers help with closing costs, are all signs the housing market is no longer in the same condition it was a year ago for the buyer.
Give me a call or text me at 505-639-2090 and let’s take a look at your situation. Who knows, maybe homeownership or that next home is closer than you think!
