November Summit County Housing Market Recap

It’s December – and we only have a few weeks left before we turn the calendar to 2024! The past month has given us a lot to digest in the Summit County real estate market, and we’ve got the insights you need to make sure your home sale or purchase is a success.

 

 

• 11 new properties came on the market in the last 7 days
• 19 properties went pending - meaning they are now under contract
• 2 properties sold and closed
• 18 properties had a price reduction

 

• At the end of November 2022, there were 720 active listings
• At the end of November 2021, there were 675 active listings
• As of today, there are 694 total active listings
• Of those 694 listings, 327 are still completely available and not pending

What we are seeing lines up with expected trends this time of year. Activity begins to slow down in December as we enter the holiday season, and buyers often take their eyes off the market temporarily.

 

However, for motivated buyers, this transitional period actually presents an opportunity. With less competition, buyers may have more leverage to negotiate on price, closing costs, or other terms, before demand picks up again in January and February. This is the time to get prepared, view listings you're interested in, and get offers lined up for the new year.

 

As noted, it's very common to see fewer showings, fewer new listings coming on the market, fewer sales, and more price reductions in December. But the market is expected to pick back up again after the holidays. Use this to your advantage as a buyer, and be ready to move quickly in January!

 

For some background - Fannie Mae and Freddie Mac are government-sponsored enterprises that buy and guarantee mortgages from lenders. This provides more liquidity for lenders to offer mortgages. Most lenders aim to originate loans that conform to Fannie and Freddie's guidelines in order to easily sell them.

 

Conforming loans must fall under a set limit, which varies by county and market. Loans above those conforming limits are considered non-conforming “jumbo” loans and come with stricter guidelines and rates.

 

Fannie and Freddie recently raised conforming loan limits in Summit County to $1,006,250. Given their key role in the housing market, changes in conforming loan limits offer clues about what they expect to happen with home values.

 

Raising these limits indicates confidence that the market will remain steady or continue seeing modest appreciation in the year ahead rather than steep declines. Of course, many variables are at play, but the fact that they felt comfortable raising limits suggests we will stay in this current plateau for some time rather than dropping rapidly.

 

For buyers, having a higher conforming limit is favorable, as it opens up more low-rate financing options for higher-priced homes in the local market. This could motivate more buyers to enter the market in the year ahead!

 

For buyers still searching for the right home, don't be discouraged by the expected December slowdown. By getting prepared now, you can act quickly and competitively in January to take full advantage of less competition from other buyers.

 

January tends to see an uptick in activity again after the holidays. It's one of the best times of year to close as both a buyer and an investor.

 

If you purchase a property in the first weeks of January, you'll be perfectly positioned to capitalize on peak ski season rental demand from January through March. These are by far the highest nightly rate months for short-term rentals.

 

Not only does closing in January allow you to immediately rent out the property at premium rates, but it also gives you the full spring and summer months to do renovations or updates before the next winter season.

 

So buyers should proceed with urgency this December to view homes and get pre-approved for financing. Be ready to transact in early January when new activity kicks off, but you'll face less competitive bidding. Consider how a January close sets up nicely for both primary home buyers and real estate investors in this market.

 

On the financing side, mortgage interest rates just very recently dipped a bit, providing some relief after a steady incline over the past 10 months. Rates still remain high historically but are showing signs of plateauing or even turning downward again.

 

Some economists predict with inflation cooling down, the Fed could actually begin cutting interest rates within the next couple of months to further stimulate the economy. Significant Fed rate cuts would likely lead to cheaper borrowing costs across lending, providing additional fuel to boost real estate market activity.

 

However, it is important to note that rate predictions have been notoriously inaccurate over the past year. There is a fair amount of uncertainty around how much and how quickly rates might decrease in the months to come.

 

For prospective buyers, it's wise to budget purchases based on current rate assumptions but remain cautiously optimistic this dip could signal a gradual decline ahead. This could create substantial savings on monthly payments.

 

In summary, although activity is slower in December as expected during the holiday season, the market appears to be plateauing over the next few months based on trends in financing availability, interest rates, and more.

 

Some uncertainty still looms around whether prices and sales volumes swing up or down in early 2024. Team Flick stays up-to-date on Summit County market conditions to best advise both buyers and sellers.

 

For anyone looking to buy, sell, or invest in 2024, reach out to Team Flick! Whether you are searching for a vacation home to enjoy ski season, looking to rent out a property short-term, or seeking a primary residence in Summit County, we will ensure you have the most up-to-date information.