|
Whether it be buyers holding out for lower interest rates, or sellers trying to time the market for their listings, hesitancy is running unabashedly rampant in Humboldt's housing market at the moment. Let's take a dive into why that's happening, and how that could change.
Days on Market, or DOM, is a figure the industry uses to track how long a property has been sitting on the market. In 2024, Humboldt County's DOM dipped down just below 30 in November, and has been on the rise ever since. Our current median DOM is hovering right around 48 days. This figure peaking in the heart of winter is nothing new, but for example, last winter that number was at 35, and the year before, it was at 25. As you can see, the number is trending in the wrong direction, and with interest rates still in the sevens, I'm not sure how quickly that changes. This stat is a small look into the health of Humboldt's market, and it highlights the fact that there is a lot of hesitancy swirling around our current market. Another correlating factor is the amount of properties that are coming 'back on the market', that is the technical status given to a property that returns to the market after a buyer has cancelled their transaction. This usually happens for a few different reasons: Inspections, financing, or a simple change of mind. The most common reason to cancel a sale is because of inspection findings, followed by financing issues (AKA when a lender doesn't properly pre-qualify the buyer) and then sometimes the anxiety of buying the wrong house. All of these motivations have been playing a major factor as of late, and in my opinion, have been exacerbated by current interest rates. People tend to pick apart a property when they feel like they are overpaying for it.
So if you're sitting there thinking to yourself, "Okay great, thanks for all the good news, but I still want to buy or sell, so now what?", I would say be patient. There will be more inventory hitting the market over the next few months which will in turn bring active buyers back into the mix. Once the buyers join the party, we'll start to see some of these stagnant properties finally sell, and the ball will begin to roll into a stronger Spring/Summer market.
| 
