Opportunity Knocks

Published 11/19/2023 | Posted by Violet Leff

What does this mean for our local housing market? The interest rate factor has clearly depressed buyer demand as it has a direct affect on affordability. Yet the fact that we have seen some recent gains in the number of homes sold year over year (4.1%) as reported by ABOR, shows that list price reductions along with seller concessions have helped spur buyer interest. Buyers can buy down interest rates or use seller concessions to lower closing costs. Every little bit helps.

There are definitely “some good opportunities for buyers” out there at this point. Where are they? Each month at mid-month we publish a Top 100 Opportunities list. If you'd like a copy just email me at violet@teamprice.com, and I'll add you to the list.

When you look at the Type of Market” by city and zip charts you’ll see the ones that are considered to be in a neutral or buyers market as defined by inventory levels. Those that have more than 5 months of inventory may represent good opportunities for buyers to negotiate, especially on properties that are vacant; in our MLS area over 50% of active listings are vacant.

However, inventory is a lagging indicator. A leading indicator can be found in our Activity Index reports. The activity index is the absorption rate of active properties going under contract. Typically the two correlate: low index/high inventory, and vice versa. Areas with low activity index and high inventory might offer some good opportunities for buyers.