Get Ready for 2024

The 2024 selling season has begun and so far the outlook is positive. Several data sets indicate this.

The first set of data we look at closely is the Activity index which indicates the level of demand and rate at which properties are being absorbed in a given area. We calculated this for the 30 cities and 75 zip codes in our metro. Currently, 80% of the 30 cities have an index of over 25% as seen in the chart below. 76% of the 75 zips in the metro have an activity index over 25%. The index represents the ratio of pending sales as a percent of the total active and pending listings.

Higher Activity Index values indicate a faster-paced market with increased demand, while lower values suggest slower sales and potentially more negotiating power for buyers. See below the chart for a breakdown of the Activity Index and its implications.

* Less than 10%: Cold market – Represents a challenging market for sellers, with an abundance of inventory and reduced buyer   interest. Price reductions and longer time on the market may be necessary.
* Less than 15%: Cooler market – Indicates a slower-paced market, with more supply than demand. Buyers may have more bargaining power, and sellers may need to be more competitive with their pricing.
* Over 25%: Healthy market – A balanced market with a steady pace of sales and around 4 months of inventory. Buyers and sellers can expect a more predictable experience.
* Over 50%: Great market – High demand and limited inventory create a favorable environment for sellers, who can expect quicker sales and potentially multiple offers.
* Over 75%: Extremely hot market – An exceptionally strong market, with homes selling rapidly and often above the asking price. Buyers may face fierce competition, and sellers can capitalize on the high demand.
* 100%: No active homes on the market – All properties are pending, indicating extreme demand and a shortage of available inventory.

The other data we look at is“type of market” which indicates sellers, buyers or neutral. 2023 saw a shift away from the very hot sellers market of 2021-22. Today the market is more balanced both by city and by zip code.