Is this frenzy market over?

The word of the pandemic was pivot.  Since late February 2022, it’s been moderation.

As we get deeper and deeper into 2022, the real estate market both locally in the Washington DC area and throughout the country.

Is the frenzy over?

To be sure, we all feel different than we did just 90 days ago.

• Yes, everything is expensive.
• Yes, the stock markets is in bear-ish territory
• Yes, mortgage rates have imploded in the last 6 months
• Yes, some of us “don’t feel as rich” as we were a year ago
• Yes, I just paid $100 to fill up my economy SUV

And yes, the word recession is being used more and more by the media

And frankly, it all feels heavy.  But….. let’s look at the local housing data for 4 key facts for May 2022!

1. Median sales price across the DC region is $45,000 or 8% higher than May 2021.
2. Inventory, the level of active listings in the market, in May was down 14.5% compared to last year. That’s 1,036 less homes for sale in May vs last year!!
   1. Despite news headlines indicating the number of active listings are increasing for the first time in over 8 years. These are national numbers. Our local DC market has a chronically tight housing market.
3. The median days on market was 6 for May 2022, the same as 2021 but has been declining steadily across the Washington DC market. May was the lowest level in nearly a year, since June 2021.
4. Showings have decreased. The number of showings scheduled by a real estate agent has been declining since March 2022… coincidently when interest rates started increasing.

What does this all mean for you are a buyer and seller?

If you are a buyer:

• The increase in interest rates have sidelined some buyers, reducing the number of other buyers you may compete against. AND the slight increase in new listings is offering a smidge more homes to pick from
• Decreased competition has offered buyers more flexibility to their buying experience too. What does this mean?  You may be able to squeeze in a home inspection, not escalate 10% over list price or remove your appraisal contingency.

If you are a seller:

• It is still a seller’s market; the dynamics have shifted and your strategy needs to accommodate the changing market.
• Pricing is critical! (It’s never not important, really). Don’t forget current home prices have appreciated over 12% since 2021.  And forecasted to stabilize through 2022 with normal appreciation returning to the next 2-3 years
• Marketing, including staging and market readiness will continue to be important pieces of prepping your home for sale.
  • Price reductions have returned to the market. It’s important to remember these are NOT a sign of weakening home prices – they are sellers (and even their agents) overestimating the market!  This is what happens when markets experience a shift in real time.

This market is dynamic, whether you are buying or selling – your strategy MATTERS!  And who you work with does too 👍 🏠!