I just got back from a real estate conference with more than 4,000 of the top real estate agents in the country, and many talked about their markets declining and slowing down. These people were from markets like San Francisco, LA, Miami, and Dallas. What I wanted to talk about today is whether or not we’re seeing a shift or softening in our Tahoe Truckee market.
Let’s look at the factors that mark a softening market. One of the first signs is when the days on market begins increasing. Last month, the average was 143 days, and this month it’s 148, so it’s it’s increasing a bit, but not enough to say whether this is a trend.
Are agents and sellers seeing fewer offers on homes? We’re not seeing four or five offers on a property, but maybe one or two. Are we seeing less traffic on our listings? Definitely - only time will tell if that’s because the summer market is slowing as usual or we’re actually seeing a trend.
Are less credits being offered for things like closing costs and flooring? The good news for sellers is no - we’re not seeing many credits going to buyers. Another sign is more price reductions. In the last month we’ve seen more than 295 sellers actually reduce their price to get their home to sell. We’re seeing more price reductions now than in the spring.
Are listing prices lower than recent sales? This is another sign. In our market, homes are very different from each other so it’s hard to tell, but overall, our prices are still within the same range. Is there an increase in housing inventory? At this point, not at all! Last month we had 716 houses for sale, and this month we have 718 houses for sale.
Overall, the answer is no! The market is not shifting; in fact, it’s great. We’ve seen a bit of softening this summer, but that’s normal for this time of year. As a buyer, your buyer advantage window will probably last another two or three weeks, and then it will start tapering off as inventory starts to drop.
If you’re thinking about selling, now is a great time. If you’re a buyer - get of your seat and come buy a house! Now is the time.
If you have any questions or any interest in buying or selling a home, contact me soon. Your prime window may be closing!