- Zillow is reporting this August that the softer demand from buyers contributed to the largest monthly drop in home values, 0.3%, since 2011. Appreciation has receded since peaking in April, but typical home values are still up 14.1% from a year ago and 43.8% since August 2019, before the pandemic.
- Slower buyer activity has left homes sitting on the market longer. The typical listing now goes pending 16 days after first going active according to Zillow, three days longer than in July and up from a mere 10 days last August.
- Inventory – the count of active listings across the nation – ticked up, rising 1% from July. This gives some good news for buyers, who now have more options to consider.
- Markets in the Midwest remain strong as Western markets cool off, especially those that saw the highest home price appreciation over the pandemic. The bigger they are, the harder they fall.
- “People who have cash — they are still in the market and with less buyer competition, they see better opportunity,” Lawrence Yun of NAR said.
- More distressed properties are coming on the market now that pandemic-era foreclosure bans have expired adding inventory for flippers.
- One thing that makes the Arizona market different is the seasonal aspect. It is typical for buyer interest to be cool in Aug-Oct. Add in the move to return the market to balance, and this fall has been very slow. If you are a buyer, this could be your opportunity. If a seller, maybe wait to list in the spring when the seasonal forces are in your favor.
- Every recession since 1974 has seen a rate drop to boost the economy.
- If you are re-selling in an area with active building going on, 32% of builders are giving concessions to buyers. You might want to consider doing the same. Ask around.
- So, what does a normal market look like? Homes selling for 97% of list, Days on Market around 38-44 days, buyers asking for repairs to be made, and more concessions to the buyers.
