Fall is here and the Autumn cool brings with it a real estate market that has some great opportunities. This is the time of year that buyers can usually find the best deals. Combine that with rates that are still historically low and it’s a great time of year to buy.  Let’s look at the details…

DEMAND:  Demand remains elevated over last year as well as continuing a 10 year high for the month. Last month I said that this felt like a “peak” of the market. I continue to have that suspicion. Contributed to this feeling is that the market has definitely cooled off a bit. This time last year there was more activity then we are seeing now which causes the prediction that the next 6 months (Oct – March) will not be as active last year during the same period.  Time will tell.

SUPPLY AND INVENTORY ACCUMULATION: Another reason that supports a peak to the market is inventory/supply.  The last few months have seen the lowest inventory accumulation in as much as 10 years. In order for this to go even lower, certain areas like West Chester would have to literally have 0 months of inventory.  I honestly don’t know how that would happen.  The point being is that I don’t know how much lower the inventory could go.

SOLD TO LIST RATIO: This number continues to remain steady and very comparable to last years numbers. If anything, it may end up being less than last year, which would add another number to indicate a slow down.

RATES: Rates continue to remain around 4%, going as low as 3.5% for certain programs and impeccable credit.

CONCLUSION: A few weeks ago, in one day, I heard of 3 friends being laid off. In and of itself, this isn’t significant. However when you combine that with reports that a record number of people are not participating in the work force, numbers that haven’t been seen since the 1970’s, it does cause concern.  I’d love to hear from anyone who reads this that has some expertise in the economy that might be able to shed some light on what they think is happening.

At the end of the day, for buyers and sellers that have solid reasons for making a move, it’s still a very good time to make the move.  The only time I would change that advice would be if someone only was going to stay for 3-5 years. No matter what the market is doing, it’s hard to buy a place and expect to make a good profit in only 3-5 years.  That normally doesn’t happen, assuming you are doing no major renovations.

Another huge factor that is going to effect the process of buying/selling real estate is the effect the new TRID changes are going to have.  That has JUST been implemented and will most certainly put some serious bumps in some settlements.

This underscores the need to have a top notch team/agent next to you, that is fully versed and prepared in how to make things as smooth as possible.

The Chris & Caleb team has been preparing for this change for 6 months and is fully prepared to help our clients have the smoothest transaction possible.  If you or a friend or family member are thinking of moving, we’d be happy to provide a free consultation to help them make the best decision. Just have them call us at 484-696.4833.