You may not feel it yet, but the housing market is shifting.
In July, the market shifted from a strong sellers’ advantage to more balanced neutral territory, according to Zillow’s latest market report. So, what does this mean for you? Let’s dive in.
The Shift to a Neutral Market
For the first time this year—and the first July since 2019—the national housing market entered neutral territory. This means that across the country, neither buyers nor sellers held a distinct advantage, a significant change from the competitive sellers’ market we’ve seen over the past few years.
In July’s more balanced market, homes stayed on the market longer, with properties going under contract in an average of 18 days across the country. I know you’re probably thinking, “That’s a quick sale!”—and you’re right. But keep in mind, it’s almost a week longer than this time last year.
In addition, housing inventory has increased by nearly 25% compared to 2023, providing more options for buyers. Plus, 26% of homes on Zillow saw a price reduction in July—the highest percentage for any July since 2018.
In the DMV and sometimes the Eastern Panhandle, we are sometimes the exception to the rule. We haven’t seen our markets shift quite as much, but we are seeing signs of changes. There are less showings, less offers coming in on properties, and longer days on market for many properties.
What Buyers Should Know
Buyers have an opportunity to explore the market with a little more flexibility at times. In other words, you may have a moment to catch your breath and make more informed decisions! Some price points and locations will remain competitive, but some will be great opportunities for savvy buyers who are ready for them.
Keep in mind that the recent dip in mortgage rates, which began in early August, could bring more buyers back into the market. This may reignite competition in some markets.
Another important consideration for buyers is that, as of August 17, 2024, new industry mandates went into place. Going forward, buyer’s agents must enter into a written agreement with the buyer before giving them a tour of any properties. This change allows for more transparency surrounding buyer agent compensation—schedule a call with us (https://calendly.com/kristin-crockett) for more info!
What Sellers Should Know
Now let’s talk about sellers. There’s no need to panic—but it may be time to adjust expectations a little. It’s no longer 2022, when properties were consistently selling in a matter of hours regardless of condition. Homes are taking a bit longer to sell at times, and with more inventory available, pricing your home correctly is critical.
As the market becomes more competitive for sellers, you can consider offering incentives to buyers, such as covering some of the closing costs or offering compensation for the buyer’s agent. Even though the industry’s new rules mean that compensation can no longer be made on the MLS, you can negotiate these details within a contract.
Final Thoughts
Whether you are buying or selling, stay informed and be prepared to adapt. The housing market, along with mortgage rates, can cause fluctuations in buyer and seller activity. And don’t hesitate to reach out for personalized market reports or advice! You can email us at info@raisethebardmv.com or fill out our contact form here.
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