The last 3 years have been a crazy ride in the real estate world. The pandemic came and prices shot up. Buyers came from all corners of the country to compete for homes that had barely hit the market an hour ago. It was like they were beating down the door. Fast forward to July and we started to feel a shift. Rates went up and some buyers were knocked out of the market while many others had to lower their budgets. Moving into August things are much calmer.
WHAT DOES THIS MEAN?
Prices are dropping. It’s true. We aren’t seeing the “crash” that people keep whispering about but what we are seeing is market correction. It seems that prices and activity are shifting back closer to what they were in the pre-pandemic days. Homes move, just not as quickly, and without the feeding frenzy we were seeing since Summer of 2020.
You now have less competition and a stronger position when negotiating. Sellers aren’t getting 26 offers in the first 48 hours anymore. This means you have a bit more breathing room. However, don’t let this fool you! For homes in more modest budgets, we are still sometimes seeing multiple offers, just not as many, not as high, and not as fast as we were.
HOW DO WE MOVE FORWARD?
Working with the right agent is going to be key! Those lazy agents who just added a few pictures online and called it a day are no longer going to be effective. Having a team of agents who understand market trends, marketing, buyer needs, negotiations, and also have great contacts for services such as lenders will be a huge benefit for both buyers and sellers.
To maximize your sale opportunities, think of your home as an experience. When you walk in how does it make you feel looking around? Is it cluttered? Is the paint on the walls chipping? Is the front yard covered in weeds? The details that didn’t matter 6 months ago, once again matter today. Making sure your home shows well to potential buyers can be the make or break in a market like this.
If you were feeling burnt out, tired of putting in offers only to find out that there were 12 offers $100,000 over asking, NOW IS YOUR MOMENT! Go back to your lender to update your pre-approval and get out there! Many people still want to sell and now there is less competition. Find a home you love and make an offer! Waiting to see where prices are going is an option, however if rates are to increase again your purchasing power may take a hit. It is important to talk to your agent and your lender to balance the risk/reward. Many buyers are finding this new market climate much more enjoyable and fun!
If you are a buyer or a seller and have any questions about the market, home values, lenders, or anything else, please don’t hesitate to call us at 707.239.4846.