The Pendulum Swing: A Changing Market Requires a Different Approach

Over the past couple of years, we've seen a gradual shift in the housing market. Homes are still selling and buyers are still active, but the conditions today are different than what many of us experienced from 2020 through early 2022.

That earlier market was unusually forgiving. Inventory was low, demand was strong, and most homes sold quickly, often with multiple offers. In that environment, pricing mistakes were often overlooked, property condition was less critical, and buyers competed aggressively just to have their offers considered. That is no longer the case.

Today's Market: More Selective, Not Slower

Today's market hasn't stopped, but it has become more selective. Over the past year, the number of homes available for sale in Douglas County in a typical month has increased from 404 to over 515, while the number of buyers going under contract each month has remained relatively steady at 131 and 123, respectively. This means more competition for sellers and more choice for buyers. As a result, not every home is selling, and those that do are typically the ones that are well-priced and well-positioned from the start. In a strong seller's market, most homes sell. In today's market, the homes that are best positioned are the ones that sell.

What This Means for Sellers

For sellers, this makes pricing and preparation more important than they've been in recent years. The first few weeks on the market tend to generate the most attention, and if a home is priced outside of what buyers are willing to consider, that opportunity can be missed. While it's always possible to adjust the price later, it's not always possible to regain the same level of interest. A focused home valuation before listing is the single most effective lever a seller can pull.

What This Means for Buyers

For buyers, this shift creates more opportunity. There are more options available, and in many cases, more time to make thoughtful decisions. That said, well-priced homes are still attracting strong attention. Buying support tailored to the current market helps buyers act decisively when the right home appears.

Three Questions Worth Asking

Real estate decisions ultimately come down to life circumstances: family, work, finances, and timing. Those factors don't stop when the market changes. The goal is simply to understand the current conditions and make decisions accordingly. If you've been considering a move, a few helpful questions to ask are: What outcome am I hoping to achieve, and over what timeframe? How does my home compare to others currently on the market? Am I more focused on maximizing price, or maximizing the likelihood of selling? Every market presents different challenges and opportunities. With the right approach and a clear understanding of current conditions, it is still possible to navigate today's market successfully.

Douglas County Market Update

We are now entering the seasonal market (April-October) for Douglas County, when the vast majority of buying and selling occurs. Notably, the seasonality of our local market has less of an impact in contrast to the overall inertia of the market. For example, in times when there are fewer homes for sale relative to buyer demand, the number of homes selling in the fall and winter months can be nearly the same as in the summer. In 2020-2021 we were selling 150-plus homes every month in Douglas County, summer and winter. Now, things have changed, and we'll begin to see more variance in the volume of homes being sold throughout the year.

The current absorption rate sits at 21%, technically still in seller's territory (above 20%), but the pace has cooled considerably from the record 77% peak in April 2022. Average days on market is now 77 with a median of 40, both up from a year ago. The dial is moving toward balance, and homes that miss on pricing or condition are sitting noticeably longer than they did even six months ago.