Q1 may be the last time for buyers to negotiate against sellers
It is both ironic and comforting to know that Compass CEO, Robert Reffkin, went on national news and outlined the reasons why the market is turning (see link below)—just two days after my email suggesting essentially the same thing. Of course, no one knows with 100% accuracy what the market is going to do or when. But all the key indicators are pointing to a shift that reveals: last quarter was the bottom, and things are looking up for buyers.
Now more than ever, it is critical for both buyers and sellers to tune out the media noise from sensationalist TV pundits and listen to those analysts like Reffkin, who really do have their finger on the pulse of what is happening. Ignore the fear-mongering and pay attention to those of us who are looking at real numbers, analytics, and margins to see where the real opportunities are.
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“For the first time in 10 months, all the statistics I look at are trending positively.”
~ Compass CEO Robert Reffkin, CNBC
The 6 reasons why Compass CEO Robert Reffkin believes Q4 of 2022 was the bottom of the recent real estate market cycle
01 25% increase in weekly mortgage applications.
02 Mortgage rates continue to move down to a 4-month low.
03 Increase in buyer interest, open house traffic, and offers.
04 In the last quarter of 2022, 42% of sellers were giving concessions to buyers at the closing table, a 10-year high.
05 Home builder sentiment improved for the first time in 1 year.
06 Pending closings were down 30+% at points in the fall, but over the last few weeks, we have seen pending listings in most of our markets nearly flat year over year.