Now that the Holidays are nearly here, all of Real Estate is in a holding patten. This is a common occurrence. so, nothing new here! However, there are some numbers worth mentioning. Pending sales, year over year are down but only by less than 3%. Closed sales are down over 4% but the median sales price is UP over 3%!!! New listings are down over 3%, percent of original list price received is down 1.4% and Cumulative Days on Market are UP nearly 28%.
As we have talked about all year, the days on market continue to creep up. Why doesn't the sales price reflect those days? Because inventory is still at historic lows. Why is that? Well, we have many factors leading us down that rabbit hole. One is interest rates, people who bought a home at a 2.6% mortgage interest rate are not going to sell and trade that for a 6% interest rate. Another is the incredible sales boom of 2020, 2021, and 2022. It's only been 5 years; the average turn over for most of the US is 7 years. We simply have people in houses that they are not ready to sell yet! A third reason is the age group of consumers commonly referred to as the "Baby Boomers". People born between 1946 and 1964. Most of that group are in their 70's and 80's and unlike earlier generations, they are not selling the family home or homes. They are holding onto them! There are lots of reasons for them to hold on- most do not need to sell, others have family members living with them and they need the space, some have several homes, and they may be able to afford to go to an assisted living or senior living and continue to hold onto their primary residence for their heirs.
Our office is indeed seeing an increased interest in potential sellers for the New Year; I am assuming most real estate offices are experiencing that and I am anticipating a resounding increase in listings come January! In the interim, Merry Christmas and Happy New Year from all of us at ERA Cape Real Estate!!
~ Deb Martin
