We may be in a bit of a “blip” right now. Agents in my office are reporting increased activity on listings. This is good news, and we may have a small increase in sales volume for June, but I don’t think we are seeing a turn-around.
I took a client out yesterday to see six homes in Barrington and Inverness. One of the homes had just come on the market and had already had a second showing by an interested party; a second home was available but the sellers were negotiating an offer, and a third home we saw was having another showing at the same time we were there.
This would give the impression that the market is hot and turnover is swift, but I don’t think that is the case. Here are the back stories: The home that just came on the market with the buzz of activity is in fact priced well, but when the agent called me for feedback (a routine practice), she didn’t seem as confident about the second showing; there was no offer forthcoming.
The home that did have an offer, did not have a good offer. The seller reported that she and the buyer were far apart in terms and that negotiations could take some time. This usually means that the buyer made a low bid, in which case negotiations could break down entirely.
The third home that had a showing at the same time as we did I have no news on, but I can say that showings sometimes occur at the same time. It is not unusual.
Now, let me make a counter-argument to my blip-theory: There are concerns that interest rates may go up. Inflation worries seem to have put a stop to rate cuts. So, it is possible that buyers want to make a move while rates are still low and inventory is high. If enough people feel that way, then the market could pick up some momentum for the summer then quiet down again after November. In that case, our “blip” would indeed be a “trend.” It is to soon to tell.
