Market Update

 Quarterly market update. In comparison to last year, we had a significant decrease in the volume of transactions. There has been concern about comparing this year to the recession. However, the difference is that the level of inventory is drastically low in comparison to what it was in 2007/2008, which is what drove the recession.

As a result, this market requires accurate pricing and patience. This is not the hyper responsive market that we saw last year. The market post the pandemic was a true outlier. This market on the other hand, is far more traditional that doesn't consist of bids. Buyers offer a purchase agreement, not bids.

In contrast, mortgage rates are still coming down. They've dropped nearly 1.5 points since they peaked at the end of October. As an example, a loan of a million dollars at the peak of mortgage rates in October would have cost $6970/month with principal and interest. Whereas now, it would be $6724/month. That's a $3000 savings per year. Of course, as you increase the loan, the savings increase proportionately. 

This gives buyers the opportunity to have less competition, some room to negotiate and at least a lower rate than when we peaked in the fall. Lastly, buyers may want to consider asking for the seller to buy down their rate in order to have a lower monthly payment. Overall, we are in a more balanced market and the variety of ways to negotiate is coming back to the forefront.