There have only been 83 NSDCC sales recorded in December, 2023, which means we may not make it to 100 closings. January isn’t looking too good either, and from what I can find, we’ve never had less than 100 monthly sales, let alone in back-to-back months. But it’s coming.
It puts the squeeze on everyone.
Buyers lose faith that there will be more homes to consider and end up jumping at one. Sellers either think they can get away with any price and tack on an extra 5% to 10% over the comps from 2021….or they give up altogether and decide to wait until the market “gets better”.
Even with a little extra inventory, the market is going to look and feel uncertain. Is it going up or down?
When we are having the fewest sales ever, the the evidence is thin, and the results vary!
NSDCC December Sales Under $4,000,000:
Number of sales that closed for $100,000+ OVER their list price: 12
Number of sales that closed for $100,000+ UNDER their list price: 17
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Based on your experience does the change in volume precede price? High volume leads to higher prices? Lower volume leads to lower prices? Historically has that been the case but not recently? Just curious.
Historically has that been the case but not recently?
Yes, I agree that it has been the case historically, but probably not now.
Historically, fewer sales meant the overpriced turkeys (OPTs) would pile up and eventually buckle to pricing pressure. But there isn’t enough inventory to notice these days, and unless the house for sale has something special about it, the buyers will ignore it completely no matter the price.
In our local environment where quality homes are valued more than money, what should be happening is a widening gap between the creampuffs and the fixers. This blog post shows that it might be underway!
Are Realtors ready to embrace foreclosures yet?
Fewer sales means less commissions.
Eventually this will cause problems for brokers.
There aren’t going to be any foreclosures, at least not around here.
But realtors and lenders are retiring from this business. It’s too hard to keep up.
I know of three prominent realtors locally who have moved to Tennessee. One bought a house for $2,000,000, and another paid $4,000,000 for their new houses!