Is the real estate market slowing? June 2021 market update
If you talk to any agent that does a decent amount of real estate transactions they will tell you that the market is shifting. The June 2021 market update numbers are showing the beginning signs of a shift. There is definitely a slowdown happening, but it will take a couple of months for the data to show that is the case. Now, I know that buyers who are actively competing with other buyers might not feel this way, but there are some sectors that are slowing.
The biggest noticeable market sector slowing down is the fixer. Whether it is cosmetic or a full-blown fixer, those homes are sitting for longer and having price drops. Current buyers have a clear preference for homes that are mostly or all updated and the number of “sweat equity” buyers is few and far between. With interest rates in the 3% range, buyers would prefer to have it done and move-in ready and finance it at 3%. Nicely updated homes are garnering a lot of offers and stiff competition.
The median home price for Salem stayed flat for the first time in many months and both May and June had that price at $375,000 for the entirety of the Salem residential market. The numbers that indicate the market is slowing are subtle. In April of 2021, 9% of listings showed any kind of a price drop for Salem. In May and June both, that number increased to 13%. So it isn’t that home prices are dropping overall, but that the rate of increase is slowing. This is good news for buyers that are just exhausted by the price increases. Buyer fatigue is a real thing and many buyers have chosen to step out of the market due to the ongoing imbalance in the market.
For other recent market reports, you can go to the following:
Daniel and I chatted about the real estate market and how we got here in February on his podcast.