It appears we’ve had quite a shift in our marketplace! It was just a few months ago, in August, that we were still seeing serious buyer activity and multiple offers on the under $1,000,000 properties. Since then, showings have dissipated and the number of offers have dropped off significantly.
There could be a number of reasons for this, including interest rate increases, the elections, buyers’ distrust of pricing and a fear of a potential dip, the holidays and general confidence level (or lack thereof) in today’s financial markets. So what do buyers and sellers need to think about in this sort of marketplace?
First off, homes are still selling. If you need or want to sell, Sellers need to know that although they may not be getting multiple offers and their properties may be on the market longer than the average property sale from the last few years, prices are still relatively high. We’ve had consistent appreciation the last 6-8 years, so you will probably be selling at an all time high value. Remember, this is a more normalized and typical marketplace. We had so much pent up demand for so many years, we began to think that was normal but it is not historically. Sellers need to spruce up their homes to be competitive and price properly. This will result in a sale.
If you’re a buyer in this marketplace, know that inventories are rising and therefore, you may have a better selection of homes, therefore, getting something that if a good fit. If you’re afraid of prices and fear a dip, know that you should be looking just as hard at your payment than at that price. Even if you were to wait until prices go down (which may or may not occur), you’re payment could actually go up if interest rates continue to rise. Also, if you’re currently renting, you’ve seen rental rates increasing at record levels. Would you rather give tens of thousands of dollars to someone else, or build equity and get a tax break in a place you can call your own?
So what do you do now? Call and we can discuss your situation and all of your options so you can make the best decision going forward. Consultations are free and at no obligation. I’m here to help!