A special shout out to all of our fantastic podcast listeners, coaching members, coaches and eXp family here in Idaho. We really enjoyed meeting all of you! Keep up the great work being the leaders in your beautiful city.
Reporting live, traveling between Boise and Kennewick, we discuss the next few things you have to be monitoring to see if YOUR market is experiencing a shift, a slowdown, an adjustment.
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2. Monitor the average Days on the Market where you sell. Are they going up or down? Does it depend on the price range, the zip code, the county? Days on the Market can vary greatly depending on the subject property, so drill down and be specific before each and every listing appointment. Your town might have an average DOM of 40 but the neighborhood you’re going on an appointment in could be only 3, or the opposite. When you see DOM increase, your market is shifting towards a less competitive one.
3. Watch the number of offers that active listings are receiving on average. Your Board of Realtors, your MLS and your local housing news all report on this regularly. Again, it will depend on the same factors we discussed on point #2. In most markets, the higher the price, the fewer offers the home will get but this is not always true. In the beginning of this year, homes were receiving more than 20 offers but in many markets this has decreased significantly. When buyers are less and less likely to compete, your market is shifting toward a more balanced market.
4. Watch for the percent of sales that received competing offers. It’s not 100%. Redfin recently reported that just under 40% are currently receiving competing offers. When you see this continue to drop, you’re seeing a market shift.
5. Monitor the number of Purchase Mortgage Applications. This is an indication of buyer demand. For example, according to the Mortgage Bankers Association this week:
“Purchase applications increased last week, but average loan sizes decreased to their lowest level since January 2021. We continue to see ebbs and flows as housing demand remains strong but for-sale inventory remains low. However, lower rates may be helping some home buyers close on their purchases, especially first-time home buyers. The year-over-year comparisons were down significantly for both purchase and refinance applications, as they were relative to a non-holiday week in 2020.”
If applications (not refinance, just purchase), continue to decline, you’re seeing less buyer side demand and your market is shifting.