Marty and Max: Is the market recovering?
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We will be watching for signals in the market. Many are worried about a flood of sellers creating an unbalanced supply and demand, resulting in more sellers and fewer buyers. In most years new listings peak in July and decrease all the way to the year end. Last year there was an incredible drop after July. This year new listings trended lower for most of the year, and we had fewer sellers resulting in fewer home sales. We will be closely watching the trends after the new year, specifically the number of new listings and how many are sold immediately. Good news for this week, as we had both. We had more sellers than last year, and we also had more immediate sales.
More inventory is generally a result of higher rates. Are you a buyer who is waiting for cheaper payments in the future? Are you hoping and waiting for more inventory? Another source of inventory is investors unloading their investments due to rising holding costs, however, this has yet to happen. Currently, we do not have panic selling. The estimated single-family year-end inventory will be around 525k. Our normal inventory peak is in August, however this year it appears that it is November.
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