John Karadsheh
This year’s real estate market has been an interesting combination of low inventory, below normal sales volume, high interest rates, and stable prices. The Cromford Market Index, which tracks our local market, shows that all of these factors have finally led us to a balanced market where real estate supply is equaling demand for only the second time since the spring of 2014.
As we view the real estate teetertotter, both buyers and sellers have their feet on the ground and are staring ahead. The question at hand is what will tip the axis? Will demand increase with a Fed rate cut? Or will supply increase if consumer confidence continues to decline? On an interesting note, the National Consumer Confidence chart, which is independent of our local market index, dipped each time our market was balanced. Apparently, market balance feels either boring or unsettling.
We know that presidential election years typically result in consumers sitting on their hands and that things tend to normalize following the presidential inauguration in January. We often see an uptick in sales in the spring after the election season because everyone is just ready to move on.
On the plus side, the balanced market has made for some very pleasant transactions with both buyers and sellers cooperating to put together good deals. Every market has its silver lining!
We will continue to track the comings and goings of the market and in the meantime, just embrace the balance!