It seems funny to talk about the market heating up when, as we are writing this, the housing market has stalled. But we will explain in a moment.
First let’s talk about where we are today. According to Mike Simonsen, founder of Altos Research, a real estate analytics firm, single family inventory is up 25% from a year ago. Home sales stalled in January and are 10% below a year ago. Sales are being hampered by mortgage rates, which are back over 7% and at their highest point since May of 2024. Simonsen notes, “inventory growth is from demand weakness rather than supply growth,” and we agree based on what we see in the field.
To be clear, this pause does not mean the market is going to crash anytime soon. As we all know, every day new buyers are created, and if they aren’t buying today that does not mean they won’t be in the future.
Our economic growth in the Valley is strong and values have been holding. At some point the tide will turn, interest rates will adjust, confidence will rise, more people will relocate, and buyers will all jump back in at the same time. So back to our original question – will you be ready for the opportunity when the market shifts?
If you are thinking of buying, now is a great time to meet with a lender and put together a financial game plan for buying your first home or your next home. Having the luxury of time will prepare you for the opportunity when the right deal, right interest rate, or right financial situation comes along.
For buyers this is also a great time to do research. Really think about where you want to live next. Study neighborhoods, drive around, look at schools, tour listings with a Realtor, and research local amenities. Evaluate your commute times and the crime rates of your target neighborhoods. Research how much it costs to replace flooring, appliances, and lighting so you can properly evaluate the forward costs on a home you may want to purchase. If you do your research now, instead of during the flurry of writing an offer, you will make a better lifestyle and financial decision when you do decide to buy.
For sellers, now is the time to get your house in order. If you think you may want to sell in the next year, now is the time to finish all those projects you have been putting off; remodel the bathroom, update your pool, redo your flooring, and improve your mechanical systems so your home will be ready to compete in the marketplace.
Take the time now to do your spring cleaning, purge things you don’t need, and start preparing for a move. The neater and cleaner the house the better it will sell – and it takes time to get it all done!
Buyers and sellers who are prepared are better able to pivot when the market changes. Some of the peak market flurries in recent years have only lasted a week or two, so readiness is key.
We are here to guide and advise you as to current market values and to here to help you create that list of things you need to do to be in the right position to buy or sell.
We love being part of the process with both buyers and sellers in the months and years before a move – this is what separates us from so many other agents who are simply transactional.
We have great resources, loads of experience, and are truly driven to help make your life easier. We want all our clients to be able to make the best and most educated decision regarding their real estate purchase or sale, so that they are in the best position possible in the years to come.