Market Update - 12.06.23
The Lake Chelan 2023 real estate market is coming to a close. Pending sales fell in November as did the number of homes for sale. This is predictable seasonal behavior.
What is notable is the pace of the slow down as compared with recent years. The median Days on Market (DOM) for residential properties hovered in the 54-59 day range from September through November. In recent years, the autumn Days on Market has ranged from 6-35 days. Only in the pre-pandemic era did the market regularly report 50 or more DOM in the fall.
This is evidence that the market continues to slow as it adjusts to higher interest rates. Homes are staying on the market longer as buyers grapple with the new financial reality of less purchasing power.
With rates expected to be steady (or slightly decline) in 2024, we are in for a new normal in real estate. The ten-year party of low interest rates is over. Welcome to a more sober season.
In this new season, Sellers need to recalibrate their expectations. They no longer hold all the cards.
Yes, inventory is still historically low. The graph below shows the Lake Chelan market has less than half the inventory it had before the pandemic.
But, Buyers are timid right now. To make a sale, Sellers need to be flexible on price. Accurately pricing a home is more critical than ever.
If you are planning on selling your home in 2024, now is a good time to begin the planning process. Be grateful that your home has enjoyed historic appreciation over the last three years.
And as you prepare for a sale, plan on investing time and money into fixing up the place to make it look dazzling on list day. The fundamentals of curb appeal are as important as ever. Please contact the Guy Evans Team if you would like to learn more about our sales approach.
