If there’s one word to describe how we’re closing out Q1 in the Foothills, it’s momentum, with a layer of reality. We called this last month. Based on the increase in pending contracts we saw earlier this year, we expected closings to start catching up, and they have. Closed sales are now up 4% year over year, and even more importantly, pending activity has jumped from 116 at this time last year to 161 today. That’s a meaningful pipeline increase, and it tells us we should continue to see improved sales numbers in the months ahead. But here’s where it gets nuanced. While buyers are stepping in, new listings are still outpacing sales. We’re up 15% in new inventory, which means more competition for our sellers and more choice for buyers. At the same time, days on market has stretched from 66 to 74 days, and sellers are giving up more through both price adjustments and negotiations. Let’s call it what it is. This is a more competitive, more selective market.
Q1 Takeaway: Pricing Strategy Is Everything
Seller price reductions have deepened to 3.3%
Negotiations have widened to 2.1%
Total seller discount has increased to 5.4%
And notably, average price is down 11% and median is down 4%
So while activity is improving, pricing power is not what it was.
Inventory has increased, giving buyers more options than we’ve seen in a while. Homes are taking a bit longer to sell, which creates more opportunity to evaluate and negotiate. That said, the best homes are still moving, so having a clear strategy is key.
We’re seeing more homes come on the market this year, which means more competition for sellers. Buyers are still active, but they’re more selective and taking their time. The homes that are priced and positioned correctly from the start are the ones seeing the strongest results, while those that miss early often require larger adjustments later."
We’re seeing more inventory and improving sales activity, but listings are still outpacing demand. Buyers are active, but more selective, which means pricing and positioning are more important than ever for sellers, while buyers are gaining a bit more leverage and choice.
REALTORS® at Madison & Company Properties
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