Are we in for a shifting market in 2019? To answer that question, there are three indicators we need to look at.
The first is our months of inventory. In other words, if no new homes came on the market, how long would it take for every home currently listed to sell? Currently, we’re at four months of inventory, which is considered a seller’s market. If we see this number go up, however, we’ll know we’re in a shifting market.
The next factor to consider is the number of new active listings. If we’re heading into a shifting market, we’ll see more new active listings. Last month, the number of new active listings rose 9.8%, which is a pretty significant jump.
Lastly, we look at the median sales price. If the median sales price is rising, that’s a good sign. It means homes are appreciating, homeowners are building equity, and there’s a healthy amount of buyer and seller activity. When the median price starts dropping, though, we know we’re in a shifting market. This means people are having affordability issues and homes are selling for less than what they were listed for.
How can buyers and sellers take advantage of a shifting market? Since we only have four months’ worth of inventory, it’s still a good time to sell. However, it’s also a good time to buy because, as more new listings hit the market and homes take longer to sell, buyers will have more options to choose from.
If you’re a seller, you need to be more aggressive in terms of how you price your home and which upgrades you make to it. Your home should look at least as good as a new construction home of comparable price—otherwise, what’s stopping the buyer from just buying that new construction home? Moving forward, your home will be entering both a price war and a beauty competition, and you want to win both. If you do that, you’ll still sell quickly and for a great price.
No matter which side of the transaction you fall on, it’s always a good time to be in the market as long as you have the right people in your corner to give you the best advice.
If you have any more questions about what to expect from our 2019 market, don’t hesitate to reach out to me. I’d love to speak to you.