It appears that local real estate sellers are facing a new reality where they’re not always getting what they’re asking for. This could be the clearest sign yet that we are no longer in a seller’s market.
Market Trends:
According to a nationwide survey published by Business Insider, since the beginning of September, an average of 9.2% of all homes on the market have lowered their prices each week. The report attributes this trend to several factors, contributing to a slightly more affordable housing market, including an increase in inventory and higher mortgage rates, which might have deterred some potential buyers.
Local Insight:
To determine if this national trend is also applicable in our area, the Just For Buyers Realty team conducted an extensive study on the history of all homes currently on the market in New Hanover County. Our two-day study took place on October 6th through October 7th, during which there were a total of 695 residential properties on the market. This figure includes single-family dwellings, condos, townhouses, and manufactured homes. On average, these listings have been on the market for 78 days, indicating that sellers have been waiting for more than a month and a half for offers to come in.
Price Adjustments:
While they wait, many sellers have decided to reduce their prices. The JFB study revealed that out of the 695 homes listed in New Hanover County, 264 of those properties have lowered their prices since the start of September. This equates to 37.9% of all listings in the county. Breaking it down weekly, as the national study did, on average, 66 homes per week (or 9.5% of the total inventory) have lowered their prices in New Hanover County, which aligns closely with national results.
“This doesn’t necessarily mean that prices are on the decline. Historically, real estate prices tend to appreciate. Instead, this study suggests that sellers are adjusting their expectations,” said Scott Saxton of Just For Buyers Realty. ” In a very competitive market a year ago, it seemed that sellers could set virtually any price on their homes and receive offers, sometimes even exceeding the asking price within a few hours of the listing. Those days appear to be over, and sellers are realizing the need to recalibrate their expectations.”
Impact:
According to our calculations, New Hanover County sellers collectively reduced their asking prices by a total of $20.1 million since September. However, experts warn that these price reductions may not be permanent. The national study predicts that mortgage rates will drop to between 5.9% and 6.1% by the end of the year. If lower interest rates lead to an influx of buyers, seller expectations and asking prices could once again see an upward trend.