The Housing Market is Shifting: Here’s What You Need to Know
Although it might not be obvious yet, the Grand Forks housing market is undergoing a significant transition. According to Zillow’s latest report, July marked a shift from a strong seller’s market to a more balanced, neutral territory. So, what does this mean for you? Let’s break it down.
The Move to a Neutral Market in Grand Forks
The national housing market has entered neutral territory for the first time this year and the first in July since 2019. This change signifies that neither buyers nor sellers have a clear advantage, a notable departure from the aggressive sellers market we’ve experienced in recent years. In this more balanced market, homes are lingering longer before selling. On average, properties went under contract in 18 days across the country in July. While that might still seem like a quick turnaround, it’s nearly a week longer compared to the same time last year. Additionally, housing inventory has risen by almost 25% since 2023, offering buyers more options. Furthermore, 26% of homes listed on Zillow experienced a price reduction in July, the highest percentage for this month since 2018.
Housing Trends
Now that we’ve covered the national trends, let’s focus on what’s happening locally.
In Grand Forks, the housing market showed the following trends in July 2024:
- Days on the Market: On average, homes went under contract in 64 days in July, marking a 16.36% increase from the same period last year.
- Active Listings: The number of homes for sale in July reached 142, reflecting a 1.42% increase year over year.
- Price Reductions: Over 99% of homes in Grand Forks went for at or near the original listing price.
What Grand Forks Buyers Should Know
For buyers, this shift means more time and flexibility to explore the market and make informed decisions. However, keep in mind that the recent dip in mortgage rates, starting in early August, could attract more buyers back into the market, potentially sparking renewed competition in some areas.
Another key point for buyers is the new industry rule that took effect on August 17, 2024. From now on, buyer’s agents must have a signed agreement with the buyer before showing any properties. This change brings greater transparency to buyer agent compensation. For more details, check out my article on the changes HERE or schedule a call on my calendar.
What Grand Forks Sellers Should Know
Now, let’s turn to sellers. There’s no need for alarm, but it’s time to adjust your expectations. Unlike 2022, when homes were selling within hours, properties are now taking longer to sell. With more inventory available, pricing your home accurately is crucial. As the market becomes more competitive for sellers, consider offering incentives like covering some closing costs or compensating the buyer’s agent. Although the new rules mean compensation can no longer be made through the MLS, you still have the option to offer it directly to buyer’s agents.
Final Thoughts
Whether you’re buying or selling, staying informed and being adaptable is key. The housing market and mortgage rates can influence buyer and seller activity. Don’t hesitate to reach out for personalized market insights or advice! You can schedule a time with me HERE.
Source:
https://www.zillow.com/research/july-2024-market-report-34287/
