Many homeowners are asking “what’s the housing market going to do?”
The short answer: nobody knows.
We have experienced market upheavals before but this one is certainly unique. Our interest rates jumped 5% in just 5 months combined with inflation AND high home prices. None of this was true in 2008. While it’s unchartered waters there are a number of things to keep in mind now, more than ever including the importance of working with the right team with the local experience to guide you through the process.
1. Price Strategically
We are already seeing more “transparent pricing’ strategies for single-family homes and condos. The slowdown in condo sales may lead to more teaser pricing to get attention.
2. Offer Dates
While offer dates are still common sellers should be prepared to accept “offers as they come”. Your agent will help you track who is asking for disclosures and how many showings there have been. Be wary some agents request disclosures without any interested parties, distorting the data.
3. Pre-emptive Offers
Be prepared and willing to accept a pre-emptive offer. It may be your best offer – and only. We know of three pre-emptive offers on three separate listings that were all accepted and placed into escrow. These were the only offers on the listings.
4. Compare Carefully
When looking at recent sales near your home be sure you and your agent examine canceled, withdrawn, and expired listings. Understand WHY they didn’t sell. Make your own price adjustments for inherent flaws accordingly.
5. Prep & Present
In tandem with points #1 & #4, homes that don’t sell (quickly) are not well-presented and are not priced right. Staging
and pricing are key.
6. Buyer Pool
No, we are not referring to the demand for swimming pools. Rising interest rates mean buyers can afford less, meaning the available pool of buyers has reduced. For example:
Five months ago, a buyer who could afford a $1M house had a payment of $3,266 for a 30-year fixed loan at 2.75%. Now their loan amount is $560,000 and their payment is $3,268 for the same 30-year fixed loan. They can only afford a house around $700,000.
7. Basic Principles
Remember, the old adage remains: Well-presented and well-priced homes will always sell first and for top dollar.
We are here to answer your questions!