DMAR Nov 2021 - The Market Is Slowing. So Why Are You Exhausted?
Comparatives are funny because they can tell any story you want. The market is slowing down? The market is still nuts! The idea real estate is hyper-local is at its epitome in times like these. Nicole dives into the Denver Metro local numbers and a bit about the economy but let's start with a story because perspective is everything.
"One of our clients this past weekend put in an offer and the listing agent and friend, Maura Putnik, called me and shared the seller side experience.
Her $890,000 listing had 80 showings, 18 potential offers Six of those retreated when they heard where the price was headed, 12 written offers of which a few improved their offer, to have that one get the deal. In addition, four agents offered to submit a backup."
If that’s slowing down, now I know why we are all exhausted.
DMAR’s November Market Trends Report shows buyers deciding to fight the good fight regardless of rates going up. Active listings dropped back to 3,376, partially due to 13.28% fewer sellers (new listings) and 7.42% more buyers (under contract) than last month. Buyers today have 782 more homes to choose from compared to the hot Spring market, can take an extra day to view the home, and will pay almost 3% less over asking than they did in the Spring. However, compared to last Fall, this market is on fire! We have nearly 1,500 fewer homes to choose from, yet we put the same number under contract for 1.5% more in almost half the time.
So, Let’s Talk Rates. Are They Going Up? Or Down?
The Federal Open Market Committee’s November meeting is happening as we go to print with this month’s Market Trends report. They are expected to announce the much-awaited tapering of $120 billion per month in agency mortgage-backed securities and Treasuries purchases. Powell will undoubtedly emphasize flexibility in his public remarks after the November meeting as the committee is likely to split on what actions to take. However, Fannie Mae, NAHB, NAR, and the MBA are sticking to their forecasts estimating 30-year mortgage rates hit 3.5 to 4% in 2022.
Home prices continue to increase, yet so do rents and the alternatives facing our first-time homebuyers today. And with the potential of rising rates, NOW is the time to jump in.
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