One way of knowing that the market is slowing down...

By
Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

Hearing the headlines that interest rates have doubled, sales have slowed, demand has dwindled... leaves little doubt, the Real Estate market is changing. Just one quick glance at my morning Market Watch (for Montgomery & Howard County) confirms that. The number of active listings is often in the triple digits whereas a few months ago I sometimes only saw a single digit. There are more listings with price adjustments and more listings are being withdrawn. And the numbers behind Price Decrease and Price Increase have flipped. The craziest days seem to be behind us (for now).

Besides these numbers there is one more sure-fire way of knowing that the market is indeed changing and slowing down: the sheer number of open house announcements and just listed blasts from other agents/brokerages, and solicitations from loan officers!

Not a day goes by now that I find myself on yet another "market minute" email campaign from a loan officer I've never heard of before nor done any business with.

I am also fielding calls from new-to-me or we-met-at-some-point-in-the-past lenders. Just the other day I had a brief conversation with a loan officer I closed one transaction with about a decade ago. We do not have a track record, but I'm good at recalling scenarios. I remember every single one of my transactions. I may not remember all the names, but I remember the property, the people, the details. In this particular case, I distinctively remember that I was not impressed by the communication from this lender.

He hasn't called me in 10 years, but decided to reach out the other day. It's striking how many are doing so, finding the time to get back to the basics after working this crazy market for 2+ years. 

There's nothing wrong with reaching out to peeps/peers we've worked with in the past, of course. Getting our faces and properties in front of a (target) audience is part of a successful marketing plan and a successful business. Reaching out, keeping in touch, follow ups, nurturing relationships with referral partners*... are vital ingredients.

But shooting blindly from the hip and inundating others with unsolicited advice and announcements? That doesn't work for me, nor on me. When too many are doing it (as it's becoming the trend again), it just gets lost anyway. But getting all these calls and having to unsubscribe from mass mailers every day is one sure-fire way for me of knowing that the market is indeed slowing down. 

On a side note, change is good and necessary, but it hasn't been a dramatic shift thus far. The numbers above tell only half the story, but more about that later.

*****

* I do frequently refer to loan officers and provide customers and clients with my short referral list. I refer to LOs who have impressed me as well as past clients with their commitment to excellence, timely communication, knowledge, problem solving and ability to successfully navigate to the closing table, but not because they've placed my name on a mass mailer.

Posted by

Andrea Bedard
Thompson Co., REALTORS®

Silver Spring, Maryland
andreabedard.com

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Comments (4)

Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Andrea - life in real estate seems to guarantee many opportunities to answer "how is the market doing?".  Whether it's a quick answer or one that is more involved, that conversation can lead nowhere or to a connection.  Sometimes it occurs immediately or one that happens over time.  

Sep 16, 2022 03:19 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Andrea Bedard ,

I like your post on way to know if the market is slowing sown. No questions its rebalancing which has been greatly needing. It was unrealistic to expect prices of homes to appreciate 20% each year! It's not a dramatic shift yet but a good shift and buyers have a chance at purchasing a house without feeling so stressed!

Sep 16, 2022 03:21 PM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

It's the most asked question Michael Jacobs, right alongside "Is now a good time to buy/sell?" Both are good questions! Quite often the answer is: it depends, and then I dig deep into subdivisions stats and history, personal motivation, goals.. I very much enjoy the process.

It was definitely unsustainable Dorie Dillard Austin TX! I'm seeing a lot more price adjustments, homes coming back onto the market, and opportunities for buyers in my market, but they can still find themselves in competitive situations. Our inventory level in August dipped below 1 month! 

Sep 16, 2022 04:20 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Andrea- it's always good to be aware of the numbers. It seems to me that when the market begins to slow many ramp up some of the marketing efforts that had to go on the back burner because they were so busy. 

Sep 16, 2022 05:40 PM