It seems we are still in a strong seller's market despite the reports of its demise (which are greatly exaggerated). Though average sales prices have fallen, they remain well above pre-pandemic levels. Even with insurance challenges and rising interest rates, low inventory remains a major factor in the level of market value appreciation. Take a look at the latest market stats below.
The Average Sales Price remains higher than it was in 2019 despite interest rate and insurance challenges. Sellers are still seeing high-dollar offers coming in.
One bit of reprieve for buyers is Days on Market seems to have bottomed out a few months ago. The feeding frenzy that was the pandemic real estate market is not completely gone, but certainly, there's been some correction.
Another bit of encouragement for buyers is an increase in the number of Homes for Sale and Months Supply. Though this is not nearly the inventory we need for a "buyer's market", this inventory increase could be responsible for the easing in Days on Market.
CASH IS BACK
Being that we are still in a very strong seller's market, many experts believe home prices and interest rates will continue to rise and decrease buying power. Yet, despite these challenges some opportunities can arise. For instance, this provides opportunities for cash buyersto come in with more buying power.
“Going forward if you’re able to buy a property with cash, you’re in a position of extreme competitive advantage over somebody who’s going to have to finance a purchase with mortgage rates at 6 or 7%,” - Rick Sharga with Attom Data Solutions.
THE SELLERS MARKET IS HERE FOR THE FORESEEABLE FUTURE
How long are we going to be in this seller's market? A while. According to the data in the graphic to the left, a Buyer's Market occurs when the Months Supply is over 7 months. In September in the New Orleans area, we were at 2.9 Months Supply, and this is over 50% more than it was at this time a year ago. Thusly, if you are trying to wait out this Seller's Market, you may want to rethink that strategy and speak with a REALTOR®.
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