Is the current real estate market a bright spot in today’s economy? The answer to this question may be a resounding yes for some people. For others, the answer may be much less specific. In this article, we will explore whether or not the current real estate market is a bright spot and others are not. Finally, we will explore what factors could lead to a brighter future for the real estate market.
Are you curious about the October real estate statistics? If so, you’ve come to the right place. We’ll compare this month’s figures to those from last year. As a result, whether you want to buy or sell a home, please read the entire report to learn what we think you should do and what the future of interest rates looks like.
October Real Estate Market Update
If you read our previous reports, you would know that the market for September was nothing out of the ordinary. Due to the rising cost of borrowing money, buyers are delaying their home purchases. But how has this trend transitioned into October?
Well, at the beginning of this month, October showed remarkable growth. Even though fewer homes are being sold, this is not something we hadn’t anticipated. If you frequently read our reports, you already know this.
Running Seven-Day Average
As the name suggests, the seven-day average is a market trend indicator for the previous seven days. It provides information on recent events, is an excellent short-term indicator, and detects trends earlier than annual reports.
New Listing — 1087
Listing Sold — 1180
Listing Pending — 973
Compared To Last Month
It’s time to examine the October real estate statistics and compare them to the same month last year. And the figures for this year are as follows! Sales are increasing, inventory is decreasing, and prices are also dropping.
- Home sales increased by 2.1% on average.
- The number of listings sold is down by 14.7%.
- Under the contract decreased by 11.9%.
- Sold price vs. The original price was down by 13.9%.
Now is a great time if you’re considering buying or selling a home this year. Purchasing a home now and refinancing it in the upcoming quarter, when there will be a lot more demand for homes, is a great way to take advantage of this opportunity.
Compared To Last Year
When we compared the numbers from October 2022 to October 2021. Here’s what we discovered:
- The average number of homes for sale is up by 122.5%.
- The number of listings sold is down by 3%.
- The number of homes under contract was down by 19.7%.
- Sold price vs. The original price is down by 17.2%.
Despite a minor slowdown from September to October, the housing market remained robust. The start of a housing recovery is encouraging. In the coming months, we’ll keep an eye on the housing market to see if these trends continue.
The Feds and How They Are Going to Continue Raising Rates to Stifle Inflation Even if It Causes a Recession
When the recession is happening, we get a lot of questions. Well, the key you have to look at is a pivot, like in dancing. It is a shift when the increasing rate stops and starts decreasing. This pivot has historically triggered a recession. Also, remember that the national interest rate is around 7%, which prevents many people from buying homes. Buyers are becoming hesitant to purchase, but some sellers are also desperately looking for buyers.
Equity and Why It Has 0 Value?
Equity is integral to a property’s value, but it has no real value in the real estate market. It is based on the belief that a property is worth the money a person is willing to pay. In the real estate market, equity is not a reliable indicator of a property’s value because it is based on the assumption that the property will be sold.
In the end, there is a bright spot in our market, not because we are seeing crazy high home sales but because we are getting great, consistent deals even in such times. This shows that well-priced homes will always be in high demand, and a buyer will always be looking to buy them. Finally, we recommend careful planning before taking any steps in the market. The interest rate is predicted to decrease when patient buyers come out looking for homes in the upcoming year. That could be your opportunity and, if capitalized well, could get you a lot of money.