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  • Is the Market Cooling Off? | Market Update

    Monday, September 13, 2021   /   by Rachel Green

    Is the Market Cooling Off? | Market Update

    In 2014, it was well established the market had not only fully recovered from the recession, but was onto new heights, sending buyers into bidding wars on homes. You can read this article about the 2014 housing market, where they interview yours truly and our dear buyer at the time (who is soon-to-be joining us to sling homes, here at Salt Lake Homes).

    Fast forward to 2021 and we wish it was the 2014 market again. This year has taught us all so much and it is truly an honor to be a part of this once-in-a-career (or so far, once-in-a-lifetime) market. Learning to win on a home has been the game for this year. Buyers relocating and feeling desperate after putting out a dozen offers suddenly say, "honey, empty the bank... this is the one", leaving 15 other buyers disappointed and back on the hunt.

    Well, good news. Things are starting to level out a bit and while it is still competitve out there, the market is starting to look alot more like what we knew in 2014-2016. So what does that mean?

    There are fewer offers on the hottest homes. A stunning condo in the $300s that would have gotten 20 offers just a month ago, might only get eight offers now. But homes that have a smaller audience (due to price, location, or condition) might actually be on the market for more than five days. And other homes will expire (aka not sell). 

    Why is the market cooling off a bit? 

    Well, first of all, a market that nearly torches you for even making eye contact is not a market we want to work within for long. A zillion offers per home is not exactly the healthy number of offers for a sustainable market. Representing buyers the last year has been the greatest challenge for many seasoned agents. To learn more about what got the market to that insane temperature, check out this post

    Buyers who have been in the market for some time are experiencing buyer fatigue. Fighting over the small amount of inventory that comes on the market week after week is enough to send anyone renewing a lease on their cramped pad. And others chose to not enter the market with their currently owned home, because there aren't enough options once they sell. 

    It's about time. According to National Association of Realtors, nearly 10% of America moved in the last 18 months. At some point, the music stops and everyone takes a seat (except that one unlucky one). 

    Uncertainty with COVID-19 Delta variant. For many, relocating has been put on hold due to the pandemic. And while many of us thought it would be over by now, it is certainly not, and some are waiting it out. 

    So what does this mean for you? 
    Being a buyer in September 2021 is far less intense than the it was for buyers of the 12 months prior. We're not just seeing fewer offers on each home, but we are also seeing days on market increase. You can take a breath (a short one – don't get carried away) before you make the biggest buying decision yet. 

    Interest rates are still phenomenal. If you haven't started the process of buying yet, you certainly didn't miss any boats. Interest rates are still wicked low. 

    So, yeah, it's a good time to buy. But please, not everyone at once.

    Let's enjoy living like it's 2014 again.