I hope you had a lovely holiday season and your 2024 is off to a great start!

Like recent years, the housing market is full speed ahead this month, a big change from late 2023. While the change is not yet captured in the data, colleagues have reported the shift, and I am seeing it with my own listings. A case study:

When I met with a seller in November, the data was not promising. This home is a four-level condo in a small section of our neighborhood. There are two models within this subsection, and all are the same age, four years. There is very little differentiating them structurally. Since the beginning of August there have been six sales. The days on market (DOM) for the six sales range 6-83 with an average of 34. The fi nal sale price (not including concessions) ranged from $505,000 to $567,000, averaging $530,000. (Ironically the highest sale price was also on the market for the least number of days.)

We worked on preparing the house for sale during December and compiled marketing materials in the fi rst part of January. The home has been in coming soon status since last Thursday. (Coming soon allows us to pre-market the property. Showings are not permitted until the status is changed to active.) Since last Thursday we have received two sight-unseen offers and, as of now, there are twelve showings scheduled throughout the fi rst three days the home will be active.

Prior to finalizing the sale price, I spoke with a few of the listing agents of those six sales to learn what feedback they had gathered and if they had any insights into the vast discrepancies of DOM and price. While there are some considerations, the biggest difference is timing.

In a matter of a few weeks, the market shifted.

There is a strong correlation between the recent drop in interest rates and buyer demand. When comparing year-over-year sales, home prices have steadily increased. A lower interest rate is how buyers can afford current prices. In addition, we have seen this trend in January for the last few years. Buyers are starting their search earlier in the year to beat the “spring market.” Perhaps time off from work, visiting a different area, new years’ resolutions, or change in fi nancial status have also been a tipping point for some. So, what does this mean for current buyers and sellers?

Buyers

• Preparation is key.
• Work closely with a lender to become pre-approved vs. pre-qualifi ed. There is a difference.
• Work with a lender that can minimize your risk to waive contingencies.
• Search for homes about $50K less than your pre-approval amount.
• Create a strategic offer when you find The One.

Sellers

• Preparation is key.
• Work with a realtor to determine which tasks yield the best return on investment and to help expedite the tasks.
• While the market is currently in your favor, do not take short cuts.
• Price fairly.

Wishing you all warmth and comfort during these chilly days. I hope to see you soon!