For many real estate brokers, the drop in market activity this Fall has created some anxiety. There is a sense that we’ve seen a lot of price drops, days on market increasing, etc. So what’s the deal? Are we seeing a downward trend? Probably not.
If you compare the house prices 3rd quarter 2016 to 3rd quarter 2015, we’ve actually experienced a strong appreciation of over 10%. The feeling of a slowing market is more likely related to the normal Fall slowdown.
Take a look at the showings per active listing chart below. Showing activity this Fall is at par with where we were the last few years. The big difference this year is the unusually high spike of activity in the Spring.
The current market anxiety has little to do with actual market conditions. More likely than not, most brokers are perceiving more of a slow-down because our “regular” market activity is at such a sharp contrast to the Spring craziness. We’re just suffering from a “Spring Spike” hangover.