Newsletter Message 4Q23

 

What’s happening in real estate…?

Hello…?!  Buyers…?  Sellers…?  Anybody…?  Buyers….?  Hey Buyers, remember when you didn’t want to have to compete and deal with multiple offers…?  Buyers…you still there?  Sellers?  Hey, Sellers…that equity you wanted to cash in on when things settled down.  Remember that?

 

Ok, I’m being a bit dramatic at an attempt at humor but the real estate market and mortgage market does feel like a ghost town compared to the previous years.  Mortgage applications hit a 28 year low this week and buyers seem to have gotten distracted.  Sold listings are down year to date 14.1% and median sales price is up only 0.3% over last year for Fort Collins.

 

Sellers are offering mortgage rate buydowns, concessions, and agreeable terms for buyers to incentivize them to make a decision.  Things have certainly changed as mortgage interest rates hover around 8%.  Although there are a number of price reductions taking place, I believe the attempts at mortgage buydowns and seller concessions are keeping reductions at bay for now.  Once again, I believe sellers have to have a level of patience we haven’t seen around here for several years.  Some houses take 120-150 days to sell.  And that’s when they’re priced properly, staged, and ready for action!  This can be seen in Days on Market and Months Supply.  Remember, we would love to see a 6-month supply of homes and we’re still a long way from that number at 2.7.  So, I guess we reached another New New New New New Normal.  We’ll wait another 90 days and see if we need to add another “New”.

November 2023


Brandon Tompkins 

970.545.0633 call or text

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