Compass CEO Robert Reffkin was featured on CNBC on Monday to discuss the current real estate market and sharp decline in transactions we saw at the end of last year. He believes Q4 of 2022 was the bottom of the real estate market cycle and here are 6 reasons why:
1. 25% increase in weekly mortgage applications.
2. Mortgage rates continue to move down to a 4-month low.
3. Increase in buyer interest, open house traffic, and offers.
4. In the last quarter of 2022, 42% of sellers were giving concessions to buyers at the closing table, a 10-year high.
5. Home builder sentiment improved for the first time in 1 year.
6. Pending closings were down 30+% at points in the fall but over the last few weeks, we have seen pending listings in most of our markets nearly flat year over year.
What does this mean for buyer and sellers? Buyers are entering the market again with interest rates slowly moving down and sellers are gaining more confidence in listing their homes due to more buyer activity. We are experiencing more of a balanced market where buyers have more power when it comes to negotiating and sellers have to prep their homes more to appeal to them.
Watch the interview here!
