Signs of spring are starting to show. In February price reductions are down 27% and seller concessions down 12% when compared to January. The average sales price of a pending property has grow to over $360k (last year we peaked at $359k in April). Inventory will continue to be our primary challenge through out this year. Typically we see 11-12% of sales for the year are closed by the end of February. If that remains true for 2023, we are on pace for just 9,500 sales in 2023, a low we haven’t seen since 2008. I don’t mention this to scare anyone, but to prepare everyone. I like this analogy from author Steve Shull*.
"Imagine your friend invites you to go for a walk in the park. Only when you arrive you realize it is a national park, and the trail is several miles of hilly terrain. You’re totally unprepared, and by the end, you’re exhausted, dirty, sunburnt, bug-eaten, dehydrated and angry with your friend.
Imagine instead your friend invites you on a long, challenging hike and advises you to wear sturdy shoes and bring water, sunscreen, bug spray and a raincoat, just in case. The trail is the same as before, but now you’re ready for it. It is still a tough hike, but at the end, you’re grateful you were prepared, you feel a sense of accomplishment, and are happy you didn’t even need to use the raincoat.”
See anyone who chooses to prepare correctly can make it through and even thrive in our challenging market, but not everyone will. Wonder what others are doing or how to start preparing, send me a message or check out our Thrive in a Shift video series on our youtube channel.
Keep elevating our industry.
David Veldkamp
Owner | RE/MAX GR
Mobile: 616.460.6123
Office: 616.957.0700
*The Full Fee Agent By Chris Voss and Steve Shull, Black Swan Press 2022