Let’s talk real estate activity for a minute.

My working theory right now is that fear and hesitation has many, many people hitting the pause button on real estate, and other, transactions. Simply from anecdote, I am seeing much less activity overall than even a few months ago (in the same rate environment). 

Looking at September numbers on the MLS. 

–showing activity is down over 14% from its peak this year in June

–supply is down substantially from June as well. The lowest point on the supply curve was May of this year (for a year look back). The highest point was June during that little tiny season rush. We are at that same supply point and maybe slightly past it. Houses are sitting.

–Our pricing ratio continues to drop. This is the difference between the list price and the sale price. It is an indication of how negotiable listings are. Lower ratio, more negotiable. For a few years, this ratio was over 100% meaning most people paid over list. Now it is at almost 99% even. This does NOT take into account closing costs paid by the seller for the buyer. If it did, I think this ratio would drop substantially.

–New Listings dropped 14% from August to September. 

–Closings dropped 11% in that same time frame

–New Under contract dropped 7.5%

–Prices are basically flat. There might be a very, very slight increase this year. 

If you can get over your fear and hesitation, this is as close to a buyer’s market as we’ve had in a long time. Pricing ratios are down, sellers are paying closing costs. There is inventory to be had and there is not a ton of competition for it. Prices are not going up. They are not going down either. The market is right.