"The End Of January! But Not The End Of Winter!!"
Posted by Larry DeBerry on Tuesday, January 31st, 2023 at 11:50am.
As I look out my window all I can see is all this white stuff! It isn't snow but more like sleet and maybe snow mixed in. I had to make sure that some of the homes I am selling that are vacant had their heat on so we wouldn't have any busted pipes. Yes, I do that for my sellers who have already moved and have their home on the market. Anyway, that is just what we do for those we serve. I also check in frequently with my sellers as well as my past clients just in case they need any advice during this type of weather. I am happy that I can be of assistance when they need it. Here we are at the end of January and the beginning of February. What has happened in the Collin County Real Estate Market? History tell us that January is not one of the most active months for home buying and selling. As we go further into the year it becomes more active. Usually, starting in late February early March we start seeing a much more robust market. It is also get warmer, hopefully!
This January, we saw inventory of homes tick back down. However, in Collin County there is now approximately 2.2 months of inventory. A long ways from a "balanced market". What is a "balanced market? 6 months of Inventory. To be honest with you, we usually don't get to a "balanced market" in our area. It does happen but not that frequently. What does that mean for home buyers and sellers? If you look at last year, homes had escalated in price, multiple offers were coming in left and right, showings were off the wall and people buying homes were having to bring cash to the closing table. Frustration was high for some buyers who couldn't compete with the over list price offers. It was hard on those looking to find a home because inventory was only a half a month. Interest rates were low but that doesn't do much good if you can't find a home and then you get beat out for it on the offer. Some sellers felt it was a good time to sell but then realized they too were going to have to compete with increased prices and offers on the next home. All in all it was difficult for many when it came to purchasing a home.
Today, we are moving back to a more "normal" market. We are not there yet but we are moving in that direction. Home buyers now have more homes to choose from and the competition for that home has lessened. The number of showing has dropped due to the fact that there is just more to look at and this time of the year also impacts that number. Interest rates rose then moved back to a lower percentage. Yes, higher than before but better. Seller's in some cases are still wanting to sell their homes at higher prices because of what went on last year. In most cases, that is not going to happen. If we look at what offers are coming in at in Collin County it is about 94.0% of list price. That is an average which means some offers for homes are higher and some are lower. I just want to point out we are not seeing 102.0% of list price which was a norm back in October of 2022. As the market normalizes I believe those percentages will increase to some extent but not way over list price in most cases. I have sold homes this year that were at list and one that was over list by a little bit. It does happen but it depends on the area, the price and the home itself. If you or someone you know needs my help, contact me at 214-676-8040 Roxanne DeBerry, The DeBerry Team of KW. Have a great February and Stay Warm!!