There once was a market where a decrepit home gets multiple offers driving it up more than 10% above list price, and a perfectly workable quality home that is priced well sits. Oh wait, that’s the market we are in!
Supply of homes available decreased to 2.2 months with the pace of hungry and brave buyers gobbling available homes up faster than sellers can list which will keep us in the Seller’s market zone. That said, we are seeing a lot more deliberate and calculated purchasing decisions which is a good thing, and requests for closing costs and repairs are back!
Cash investors aren’t as prevalent, which might seem counterintuitive since there are finally some great “deals” compared to previous years. However, the “bank of mom and dad” is gaining traction. Family members are offering parts of their nest egg as private mortgages, providing a healthy rate of return while saving buyers on their monthly payments.
Buyers contingent on selling their current homes are enjoying more success in getting offers accepted, along with some flexibility in the timeline compared to previous years.
The days it takes for a home to find a buyer is on average 37 days in the metro area which is up slightly from the last few months. For sellers it has never been more important to price the home right out of the gate, and by right we don’t mean what the online valuations are telling you. There are so many intangibles that go into correct pricing, that goes far beyond general algorithm. We are seeing a TON of price corrections, which seems to be a bit of a hasty strategy as the mental hurdle for most buyers isn’t sticker price, it’s monthly payment. While a slightly lower price doesn’t ease the pain much on the monthly output, we are experiencing some really creative strategies that work to decrease the buyer’s monthly payment and helps the seller hold onto more of their equity without price reductions that drag nearby values down.
When rates go down, pent-up demand of other buyers who are also waiting will flood the market and cause more competition and higher sale prices. You can’t renegotiate the price you pay for a home once closed, but you can refinance the rate when they come down. Many lenders are offering a no-fee refinance option if done within 3 years, and we are happy to connect you if considering a purchase with a loan.
You will find us on the edge of our seats like we’re watching the early 90’s Trail Blazers, with strategies that change week by week these days. If you’re curious what is going on in real time and the impact on your next move, we would love to hear from you!
Pro Tip: Your home is your home first, and an investment second. Think of it as a forced savings account where every dollar you put in, will come back to you and then some when you sell.
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