Market Updates with Will - Week of September 7th

Thanks, Admin! We are back with this week's market update. And before we get into the numbers, let's check the replay from last week's video (unless you're a Michigan fan, then we can just ignore it). To my first-time blog readers, you can find the Instagram or Facebook versions of the video at the respective link. TL;DR - With the holiday weekend coming up, expect there to be a little bit of a slowdown. And upon further review, the call stands. What we felt last week showed up in the numbers this week.

Now remember, we're currently tracking absorption rate, which means if we bring no more homes to the market, when would we run out? Taking a look below, we have seen total inventory increase by 24% over the last three weeks. And across the board in all catergories that we track, we have seen an increase of 20% to 25%. That is really uncommon for this time of the year. What's leading that charge? Interest rates going from 6.71% to 6.89%, which is causing a lot of fear in the market. The one, and most concerning, area is our pendings. We saw pendings drop by 31% over the last three weeks.

Part of all this change was the holiday weekend. But what we've seen over the last three weeks with this slowdown are that buyers are much more fearful because of the headlines and different things that they are hearing. This means being a skill-based agent matters. We are going to have to have deeper conversations about the reality of each buyer situation in order to get them to move. Sellers, you're going to have to be a little more patient. And, like we talked about last week, pricing is everything. We have to be very detailed and aggressive with how we're pricing homes. Now, historically, what we've seen is after a holiday weekend, we see an increase in activity. And that is exactly what I expect this week - pendings should go up.

To view this blog in our video format, check it out on our Instagram and Facebook pages. Until next week, agents!