So, are investors just waiting in the wings?
There is a tiny uptick in the number of investors wanting to sell. A net 16% of real estate agents say more investors are selling, compared to 14% in June. But that’s more of a blip. It’s not a huge change.
Though, agents do say that more people are asking for property appraisals. So, I called CoreLogic. They say that agents are creating more appraisals in their system (+10%).
This could mean more listings could come soon.
I thought there’d be more listings
Honestly, I thought there’d be a big surge in listings as soon as the bright-line test changed.
I often meet investors who say they’ve wanted to sell. But they’ve been waiting for the bright line test to change.
But it’s not a great time to sell. There is a lot of competition, and the market will still be depressed throughout 2024.
Perhaps investors holding on by their fingernails will decide to wait a bit longer.
After all, interest rates have fallen. Most investors hope they’ll fall further.
Perhaps they’ll wait for lower rates or until it’s a better time to sell.
So, I’m not convinced we’re seeing the full effect of the bright-line test changes just yet. We’ll need to wait for more data.
