We knew it would happen eventually. We just didn’t know when.
But the numbers are in, and the local market is finally slowing.
Historically, buyer demand in our real estate market peaks around April and from there the sales absorption rate will slowly drop throughout the remaining months of the year.
Not in 2020 though!
This year housing demand intensified after the stay-at-home order, and we didn’t see it slow down until the end of August. We have been watching the market very closely throughout the month of September and the numbers have confirmed that we are seeing the market slow down finally.
According to MLS (see graph below), last week saw the lowest sales absorption rate that our market has experienced this year. I have shared in previous columns that market activity often changes slowly and then suddenly. The month of September appears to have been our “slowly” and last week may have been our “suddenly”:
Earlier this year I wrote that leading indicators were suggesting that our market was shifting out of the strong seller’s market that we have been experiencing for years now. Then COVID-19 showed up and hit the rewind button on our market and threw us right back in to a crazy seller’s market again. Buyers were clamoring for new housing inventory to choose from but it simply wasn’t available. Demand outpaced supply significantly. Couple that with mortgage interest rates around 3% and you had a perfect real estate storm for a home seller.
Most likely our market will head back into the shift that it was originally headed into before. Continued unemployment, layoffs, and COVID-19 could actually speed up the shift as homeowners are forced to sell due to financial crisis and buyers are prevented from purchasing a home for the same reasons.
If you are considering a home sale and would like to create a plan to ensure your success in spite of the crazy market conditions, please contact us today. We would be happy to conduct a no-obligation market analysis for your home and neighborhood.
This Sponsored Column is written by Chad Taylor of the Taylor-Made Team and Keller Williams Realty Key Partners, LLC. The Taylor-Made Team consistently performs in the top 3% of Realtors in the Heartland MLS. Please submit follow-up questions in the comments section or via email. You can find out more about the Taylor-Made Team on its website. And always feel free to call at 913-825-7540.