{"id":3501,"date":"2022-09-16T20:37:41","date_gmt":"2022-09-16T20:37:41","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/09\/16\/holy-cow-what-happened-to-the-market\/"},"modified":"2025-03-13T02:46:55","modified_gmt":"2025-03-13T02:46:55","slug":"holy-cow-what-happened-to-the-market","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/09\/16\/holy-cow-what-happened-to-the-market\/","title":{"rendered":"\u201cHoly cow! What happened to the market?\u201d"},"content":{"rendered":"\n<p>Family circumstances forced Destin, Florida-based <strong>Corcoran Group<\/strong> agent and leader of <strong>The Ketchersid Team<\/strong> Jodi Ketchersid to take a step back from her real estate career in May. <\/p>\n\n\n\n<p>When she returned to the industry in late summer, the housing market looked different. A lot different. <\/p>\n\n\n\n<p>\u201cIt was like, \u2018Holy cow! What happened to the market?\u2019\u201d Ketchersid said. \u201cIt felt like it happened overnight, but it wasn\u2019t like the light shut off. I think this area was so undervalued for so long \u2014 prices were low \u2014 and then everything went crazy and house prices became almost hyperinflated as people were willing to pay well over list price.\u201d<\/p>\n\n\n\n<p>In November 2021, the median home sales price in Destin soared to $650,000, a year-over-year increase of 28.1%, <a href=\"https:\/\/www.redfin.com\/city\/4501\/FL\/Destin\/housing-market\" target=\"_blank\" rel=\"noreferrer noopener\">according<\/a> to Redfin. Since then, prices have cooled considerably dropping to a median of $605,000 in August 2022, just 1.0% higher than a year ago.<\/p>\n\n\n\n<p>Ketchersid said home prices are not the only thing in the Destin market that has cooled in the past few months.<\/p>\n\n\n\n<p>\u201cThe average number of days on market now is getting closer to 90 days as opposed to like 24 hours, and we aren\u2019t getting those countless multiple offer situations anymore,\u201d she said.<\/p>\n\n\n\n<p>In addition, Ketchersid estimates that there has been roughly a 75% increase in inventory since the spring, giving buyers a chance to browse around and potentially get a better deal.<\/p>\n\n\n\n<p>These market conditions \u2013&nbsp;largely driven by mortgage rates now at the highest level since 2008 \u2013 are not unique to Destin. Across the country housing markets that were white-hot just a few months ago are seeing prices drop and activity slowdown.<\/p>\n\n\n\n<p>According to a <a href=\"https:\/\/preprod.housingwire.com\/articles\/home-price-growth-is-slowing-dramatically\/\" target=\"_blank\" rel=\"noreferrer noopener\">recent study<\/a> from <strong><a href=\"https:\/\/www.corelogic.com\/intelligence\/u-s-home-price-insights-september-2022\/\" target=\"_blank\" rel=\"noreferrer noopener\">CoreLogic<\/a><\/strong>, the Crestview-Fort Walton Beach-Destin, Florida metro area, along with the Settle suburbs of Bremerton-Silverdale, Washington, as well as Reno, Nevada, Boise City, Idaho, and Bellingham, Washington, are all at risk of price declines over the next 12 months. Bremerton-Silverdale topped the list with a 70%-plus probability of home price declines.<\/p>\n\n\n\n<p>In Boise, Idaho, where prices have cooled from $579,000 in May 2022 to $485,000 in August 2022, a <a href=\"https:\/\/www.redfin.com\/city\/2287\/ID\/Boise\/housing-market\" target=\"_blank\" rel=\"noreferrer noopener\">3.0% year over year price decrease<\/a>, local <strong>Keller William<\/strong>\u2019s agent Christina Ward says pricing homes well is essential to getting a deal done.<\/p>\n\n\n\n<p>\u201cWe usually price homes based on the last three months,\u201d Ward said. \u201cIf we are in a declining market, we try to get a bit ahead with the pricing and if we are in an increasing market, like the last couple of years, we price based on the previous three months and still get a higher offer. But what I have noticed more recently is that my usual pricing strategy is not getting homes to move as quickly as I or my clients would like. So, I am actually recommending my clients come in a little bit lower even though we are not seeing the actual overall market decrease in value yet.\u201d<\/p>\n\n\n\n<p>Agents across the country are struggling to manage seller expectations. According to a recent <a href=\"https:\/\/www.bakersfield.com\/ap\/news\/real-estate-squeeze-rising-interest-rates-and-stubborn-sellers-price-out-middle-class-homebuyers\/article_8610b23d-2124-5607-b6f4-6f0d8754030a.html\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> by proptech firm <strong>HomeLight<\/strong>, 86% of agents believe sellers are overconfident in current pricing, with 65% of agents reporting that this results in sellers being unwilling to take on deferred maintenance and 57% reporting that sellers have too much clutter in their home to make it appealing to buyers.<\/p>\n\n\n\n<p>\u201cWe are having to take a little extra time with a property before it is listed, so the best version of it is going up for sale,\u201d Megan Lowe, a Reno, Nevada-based agent at <strong>Chase International Real Estate<\/strong> said. \u201cJust making sure we don\u2019t cut corners so that when it hits the market it is the best listing out there. Before you could put a property on with dirty carpet and no one cared \u2014 that isn\u2019t the case anymore.\u201d<\/p>\n\n\n\n<p>Frustrated sellers grappling with market that&#8217;s suddenly down in the dumps is only part of the problem.<br><br>\u201cThe biggest trend is anxiety from the buyers,\u201d said Mike Wood, a <strong>RE\/MAX<\/strong> agent in Reno, Nevada. \u201cIt really stems from a fear of the unknown. What I am hearing from most buyers is that don\u2019t know if they want to buy right now. They keep hearing that prices are going to continue to drop and I think people tend to focus on what has happened before, so they are thinking back to 2007 and 2008, but the circumstances now are so different that I don\u2019t see that happening again.\u201d<\/p>\n\n\n\n<p>In January 2022, year over year home price growth in Reno surged 29.5%, but had slowed to 10.9% by August 2022. The median home sale price has also dropped for three straight months to $549,000 from a <a href=\"https:\/\/www.redfin.com\/city\/15627\/NV\/Reno\/housing-market\" target=\"_blank\" rel=\"noreferrer noopener\">high of $579,000<\/a> in May 2022.<\/p>\n\n\n\n<p>The half-dozen agents who spoke with <strong>RealTrends<\/strong> all said a different skill set is required in the current housing market.<\/p>\n\n\n\n<p>\u201cThe analogy was that before we could just walk outside to the apple tree and pick a ton of apples\u2014 they were just hanging there. But now we have to climb branches and nurture the tree,\u201d Wood said. \u201cWe are having a lot more conversations with clients, discussing how the market works with them and how it has changed. Instead of calling sellers once a week, it is more like three or four times a week with in-depth feedback.\u201d<\/p>\n\n\n\n<p>Ketchersid added: \u201cIt is very important for agents to reach out to their sphere. And then of course when they get the lead pricing and making sure the property is staged and ready to sell.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Formerly white-hot housing markets like Reno, Boise and Destin have cooled down considerably over the last six months. Here&#8217;s how agents are managing client anxiety and getting deals done.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>\u201cHoly cow! 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