We all know the market has shifted, we hear it daily, and the media, as always, loves to make it sound like a crisis. The thing is, if it’s not negative news, it will not sell. So here is the (not so negative) real estate market summary.
For almost two years, we were in the deepest seller’s market our country has ever faced. We all heard about it; everything sold quickly, at record-high prices, and in the most insane conditions. I even represented a seller that got $140,000 over the asking price, with no repairs offered by the seller, and five months of free rent back. Yes, that means they lived for free for five months after selling their home while they decided what to do with all of that extra cash.
So now the Fed, to control inflation, has been raising interest rates, which has considerably reduced demand in the housing market, and we see fewer and fewer buyers ready to act. But one thing that has yet to be accounted for is that this measure also cuts sellers off the market. Why, you ask? More than 65% of homeowners have a mortgage with an interest rate below 4%. Unless strictly necessary, all these homeowners are unwilling to let go of their monthly mortgage payment, even if it means lots of equity in their pockets.
Just last week, I submitted an offer on behalf of a buyer client. We offered $60,000 USD over the asking price with a 14-day close. We were very aggressive with our offer because my clients loved the property; they could see themselves having their first child in this home. Well, despite my many conversations with the listing agent, I couldn’t even get a counteroffer; the property had eight offers, and apparently, there were offers better than ours. So, a beautiful home in a good location, priced right, will still attract various buyers.
The market has changed, but it’s for the better. Yes, as a seller is not as amazing as it was, you will not get everything you want, but you will still get away with much, and it’s only fair to have it this way. As a buyer, you can now shop around and make informed decisions, versus the frenetic market we were
facing where you had to offer above asking, with no contingencies, no inspections, ten days close, and even those offers were being rejected.
The most crucial part of today’s market is knowing how to price your home. As a real estate advisor, I can help you determine the best sale price for your home. Do you want to learn how much your home could sell for today? Just respond to this email, and I will provide a real estate review with tons of informative information.
