Let’s answer 2 important questions today…
- Are we in Selling Season and when will it end?
- Do the Seller’s current expectations meet today’s reality?
Diving right in! Are we in Selling Season yet? A resounding YES! Both from what I’m seeing (multiple offers, homes selling quicker than a couple months ago, and open house attendance) and from the stats, I can firmly tell you we are in Full-On Selling Season.
The graph you see below shows the last 15 months of Homes For Sale (light green) VS Homes Sold (dark green) in the given month. Please note that the Homes Sold generally accepted an offer the month prior (IE An accepted offer in April is a Home Sold in May).
You’ll notice that this February had more homes sell than in January. This is the indicator that the Selling Season has begun. Home Sales rise, and also a higher percentage of homes for sale actually sell (40% of homes sold in February vs 25% of the homes in January). This means things are tougher for Buyers but easier for Sellers.
So when will it end? Though last year had some additional factors (IE mortgage interest rates rising steeply)., you can see that May of 2022 was when the most homes sold. Then from June on the number of Homes Sold began to drop. So since the Homes Sold in May likely accepted an offer in April, the main part of our selling season would be February through April. That’s when the percentage of homes selling is at it’s highest. May and June we still have plenty of home sales, but the percentage of homes sold begins to drop off, so I would consider that “Shoulder Season”. May, June and July are also when we typically see the MOST homes for sale (inventory) and thus the market becomes more negotiable for Buyers and tougher to sell for Sellers.
None of this is “bad” news. It just means that when you decide to buy or sell, you need someone to explain to you exactly what’s going on in the current market in order to make the best decisions for yourself.
Now let’s answer question 2: Do the Seller’s current expectations meet today’s reality?
If you take a peek at the graph below, you can see the Green line represents the Average Active Price (For Sale Price) and the Red line represents the Average Sold Price.
Last month the Average Active Price was the highest it’s ever been at $1,025,000. That’s an increase of 4.6% from last February. And yet, the Average Sold Price was $711,000, a decrease of 3.1% from last February. Interestingly, it appears Sellers remain very optimistic about the sales price of their homes. Thus, Seller’s expectations are not inline with reality.
Reality is we have a slow overall decrease in prices and a more negotiable market than the last couple years and in order to sell efficiently and get the top price it makes more sense to list at a fair value not an upward trending value. By pricing fair, you have a higher chance of selling and a lower chance of Buyer’s driving a hard bargain with their negotiating tactics.
There are so many factors when it comes to deciding to Sell or Buy a home. And though many people want to Buy or Sell at the BEST time, it may be wiser t contemplate the best time FOR YOU. And then work within the parameters of the market to make great decisions on strategy. I’m always available to help you with that - just reply to this email or give me a call. 530-503-5225.
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