Residential Activity Picking Up
While the Spring selling market in 2022 was fairly subdued, there was a significant uptick in Spring 2023, according to the property valuation group, Herron Todd White.
In his November Month in Review, national director of residential, Ben Esau, says there has been a surge in transactions and listings, which reflected a more traditional selling season.
Esau says overall stock levels are still below long-term averages but the spring injection of new properties for sale was creating more of a balance between supply and demand.
He says cost-of-living pressures and reduced spending in November has resulted in poor consumer sentiment about the market.
The review says the prestige market is traditionally a lead indicator of what direction the rest of the market is heading in.
“Historically, when the prestige market has been shaken, slowed or has dropped, it has often been a sign of things to come for the wider market,” Esau says.
In this cycle he says even the $10 million plus markets are still experiencing strong demand. “A potential credit crunch that could close the gate on available capital could instigate a shift in the prestige market but as of today, that doesn’t look likely,” he says.
