January Market Update: What the Numbers Mean
The real estate market is always shifting, and January proves it. While closings are down (which is typical after the holiday slowdown), we’re seeing a big increase in new listings and active inventory. The median sale price is up, and days on market remain steady—so what does all of this mean for buyers and sellers? Let’s break it down.
Closings Are Down—But That’s Normal
A drop in closings isn’t surprising for this time of year. Many deals that closed in December were likely negotiated in late fall, and fewer buyers were actively searching over the holidays. This seasonal trend happens every year, and as we move further into the first quarter, we typically see buyer activity pick up.
Home Prices Are Still Rising
The median sale price has increased, which tells us that demand is still strong, and well-priced homes are continuing to sell. Even with more inventory, the market is still favoring sellers in many price points, particularly if a home is in good condition and priced competitively.
What This Means for Buyers
More options: January has kicked off with a surge in new listings and active inventory, meaning more homes are hitting the market. This is great news for buyers who may have been struggling to find the right home in previous months. More inventory means more choices.
Negotiation opportunities: With growing inventory, you may have more room to negotiate. Keep in mind, negotiations are not limited to the sale price. Seller-paid closing costs can save thousands of dollars upfront, rate buy-down and incentives can significantly lower your mortgage rate and monthly payment, and repair requests are now more likely to be accommodated.
Act fast: While competition isn’t as intense as last year, well-priced homes are still moving quickly. If you find the right home, don’t hesitate!
What This Means for Sellers
More competition: With inventory increasing, buyers have more choices. Your home needs to stand out with the right price, presentation, and marketing. Focus on first impressions—both online and in person. Fresh paint, especially in neutral tones, gives your home a clean, updated look. Deep cleaning and decluttering make spaces feel bigger and more inviting. Great listing photos are a must—buyers often decide within seconds of viewing online whether to schedule a showing. Finally, small but impactful fixes like updating light fixtures, refreshing landscaping, and ensuring all appliances work can make a huge difference in how buyers perceive your home’s value.
Strategic pricing is key: Overpricing could lead to longer days on market, which can turn buyers away.
Buyers are active: With the median sale price rising, well-prepared homes are still selling.
Final Thoughts
This market shift is part of the natural ebb and flow of real estate, and both buyers and sellers can win in this market with the right strategy. If you’re thinking about buying or selling, now is a great time to talk about your goals and how to navigate these changes. Remember, the process takes time—between house hunting, making/accepting offers, inspections, and closing (which can take 30-45 days alone), waiting too long could push your close date later than expected. Spring is also when competition heats up, so getting started now gives you a head start before more competition enters the market. Let’s start the conversation and get you on track to move by summer! 🌞🏡
