The following is a market update, directly from our friends at the Cromford Report. I’ve been reporting that the seller’s advantage is slipping. Plus, Michelle and I have been seeing anecdotal evidence backs up what you can see below.
While Cromford has some optimism for late February, we suggest that you take an aggressive pricing stance if you are listing your property.
The Cromford Market Index continues to weaken for sellers and we expect a little more negative movement over the next 2 weeks for 2 reasons.
- Slow contract activity during the first 2 weeks of January led to a larger rise in active listings than last year
- Low contract numbers in November and January led to a very slow closing rate during January
However, we are more optimistic for sellers than we were in mid January. The second half of January saw contract activity pick up nicely and this has 2 expected results which could show up in the index by mid February:
- Active listing counts should stop rising and may start to fall back slowly in a normal seasonal pattern (see chart)
- Closed listing counts should start to rise as the additional contract signings in January come through escrow
It is not clear if the boost in contract activity will continue into February but a combination of lower interest rates and higher FHA loan limits tends to support that outcome.
If you want to build the right strategy for buying or selling, call us at 602-456-9388. We can help.