It has been fast and furious really since January of 2012 when we started to see shrinking inventories. Anybody that has been around me knows I have been asking for homeowners who were thinking of selling to sell! However, in my years in this Real Estate business I have never seen such a frenzy and have personally experienced a listing with 45 showings in less than 24 hours and 14 offers. (I would have had more had my sellers allowed showings, what a zoo!) It has been a great market for sellers with multiple offers and short days on the market. Properties still need to look good and be priced right. From a buyer’s stand point it has been a rough ride. I have had buyers that competed with 18 different offers and ended up spending $31,000 over list price and agreeing to come to the table with the cash should the property not appraise at the agreed price (we knew it wouldn’t and they really, really, really wanted that house) I have had a buyer with cash, double her earnest money, make it go hard and waive the inspection objection to obtain a property. (We did do the inspection and the items that came up we got bids on and determined it was more cost effective to fix them than for my buyer to walk away from her earnest money).
So what about now? At certain price points for sellers it is still the Wild, Wild, and West. We are seeing properties above $500,000 slowing down and we are seeing more price reductions than we have in I don’t know when. We are seeing interest rates bump up and seeing more properties come on the market and come back on the market. In other words we are seeing the market shift. This means some relief for weary buyers that write 20 offers before one is accepted. I hope it means less deals that fall because of hasty decisions on the part of buyers to secure properties. I hope it means thoughtful and true inspections with buyers only asking for the important to be fixed and not beating seller’s up because they paid too much. I hope it leads to a healthy evening of the market.
Is it still a good time to sell? Absolutely! Even as interest rates tick up a little, they are still low, allowing your buyer pool to be broader. Every time they go up a point it reduces the buyer’s buying power by $30,000. We don’t know where they will be in 6 months, we know where they are now. A well-staged, marketed, and priced home is going to get SOLD and that is our expertise.
Is it a good time to buy? Yes interest rates are still low and there is more inventory coming on the market. I believe we will see prices starting to rise, not in the 9 to 10 percent plus, year over year, and at a healthy rate between 3 and 6%.
I believe it is always a good time to buy and sell Real Estate! For a comprehensive analysis and market evaluation of your home, please give us a call. We would love to counsel you with our knowledge and expertise.