Get Aggressive During the Winter
A combination of factors will make this winter an excellent time to buy.
Should I wait to buy until the prices go down? Well, we would need prices to go down to do that, first off. Right now, however, the statistics behind this conversation lie within the inventory, which is the supply and demand factor.
So with our current supply, which has thankfully increased, causing a little softening in the marketplace, we're up to about two months of inventory. A normal, even buyer-seller market is about 5 to 6 months of inventory. We're about a third of that right now. So for us to plateau, meaning we're getting back to a level market, we need four more months of inventory.
That would mean we need nobody to buy a house but the equivalent amount of listings to come back into the marketplace to get to even. That doesn't even mean prices are going to start to decline. So I don't have a crystal ball, but I would love it if we could add some more inventory. Unfortunately, that's not what we're seeing in the trends with buyer behavior right now.
So we're going to have to be a little bit aggressive when we say that prices are not going to go down any time soon. There are going to be some specifics where you're going to be able to get a deal here and there in the micro marketplace.
In the meantime, right now, we're approaching a very rare situation where rates are impacting buyer behavior. Then we're approaching the winter marketplace, in which there are fewer buyers seasonally. We're going to see some really good deals in the winter months. So as we approach November, December, and January, we're going to have a rare opportunity for buyers to leverage the supply and demand factor. Still, it's important to understand that prices overall are not going to go down.
"A buyer-seller market is about 5 to 6 months of inventory. We're about a third of that right now."
The best conversation I'm having right now is that the homes that you're looking at are going to be the best price where they're currently at. If you look six months from now, that price is going to change because of where demand is. Then, if you look a year from now, that price is going to change as well. So when you're going and looking at properties right now, they're going to be at the best price you're going to see from the marketplace. So as we start to navigate the winter months, fewer buyers in the population—be prepared to get aggressive because there are going to be a lot of deals coming in the marketplace.
If you're thinking about purchasing in the upcoming months, trying to get a deal, whether you're investing or it's for your current residence, don't hesitate to reach out. We're happy to help. We get very aggressive in the winter months as well.