What’s going on in the market these days? Well I can tell you we are seeing a lot of price adjustments, and when I adjustments, I mean downward ones! Supply levels are improving do to inflation and rising interest rates. As I am writing this in September 2026 the interest rate for a 30 year fixed rate hit 6.78% from Mortgage Daily. Holy smoke Batman! BTW, the reports for September are not out yet, although I could run it manually, but overall you will get the gist.
Months inventory is one the most looked at tools to measure inventory in the market. This number shows how many months it would take to sell out all the given inventory in the market. Historically 6 months is a fair and balanced market. If it’s under 6 months it’s a Seller’s Market, and if it’s over 6 months is a Buyer’s market. A low level of supply tends to push the prices up. Currently, we are at 2.5 Months, which is very low. I remember precovid sitting around just of 4 months for single family homes. The good news is this time last year it was 1.5 months, which means it’s increased over 66%.
Personally, I think it’s going to shift into a Buyer’s market and go above 6 months. And if it doesn’t then I think it’s at least going to hit 4-5 months inventory. That will keep it a Seller’s market, but very much cooled. A stable market, one which we can transact in without lines around the corner, waived appraisals, no contingencies. Wow, was that a crazy time. Aside from not being able to help any of my Buyer’s who were paying with mortgages, the worst of it was dealing with Realtors who were acting unethical by pushing the limits. But that is a whole other topic.
Everything is changing currently, just look at the numbers. Closed sales are down 26%, inventory is up 46% and medium time to contract is up 50%! I am comparing these numbers from August of 2021. It’s incredible that the median sale price is up over 13% at $562,500.00. Well, I’m sorry to say, that not going to stay the same. There are a lot of factors to why this is happening. A few things; interest rates were at historical lows. Huge influx of people during covid gobbled up all the inventory, and yes at record low interest rates. Homeowners who have a lot of equity and would be in a great position to sell are sitting inside of attractive rates previously in the 4-5’s or they may have refinanced into the 2-3’s. If they sold and had to repurchase their rates will be two to three times higher. It doesn’t make a lot of sense. The people who are selling right now, in my opinion are selling because they have to. Maybe the house is too big or small, too many stairs, they need to relocate. The ones who can stay put will, no one wants to climb into a 6-7% interest rate where there Mortage payment is now 50-60% higher than their 2.5-3% low rates. What a conundrum!
Ultimately we are having stabilization and reduction of prices currently. How far will it dip here in sunny South Florida? I’m not sure, no crystal ball. But if you want to sell, now is the time, don’t wait until next week, next month. What do you do? Well rent a place for a few years, see where the market goes then pounce! Finding a rental is a whole other problem too! Low inventory all around the board.