There is one thing that the real estate market never fails to provide us with: change. The change can be gradual, or it can be swift. The change we are experiencing today was fast and unpredictable as it is not a broad-brush change in the market. There are pockets where we have recently gone from 75 to 100 showings in a weekend to fewer than eight, while other markets have 45 showings in two days and ten offers. There is no rhyme or reason for the disparity in the activity levels and the number of contracts. However, the one thing I do know is that price is critical in getting a home sold. If you are considering selling, bear in mind that the last several months of sales have already escalated your price to where you should not expect a huge jump in pricing.
Additionally, you should not overprice the house, as buyers are more discerning and conscious of pricing. This being said, we are still seeing prices go 10% over the list, but these occurrences are more the exception than the rule as it was just a month ago. Obviously, the rapid increase in interest rates has affected the market, but they have not caused a crash or bubble. What the increase has done is made people reconsider price points and payments. Therefore, the sudden rate increase is no reason for the slowdown in some areas. In my opinion, it is a combination of factors, as there is still high demand for housing. Another factor besides rising rates could be buyer fatigue; purchasers may be tired/frustrated with losing out multiple times on offers. Maybe it’s the lack of inventory in their price point or looking at overpriced houses and houses in poor condition. Or it could have been spring break and the holidays; only time will tell. Or perhaps it is just a lull like we saw last August to November before skyrocketing through April.
In a recent conversation with a lender, they said they wrote 80 pre-approval letters for one buyer. In most cases, lenders are writing between three and five letters for buyers before they end up successful or out of the market. All this being said, my experience, research, and due diligence can provide you with the right advice to make the best decisions when selling or buying a home. I am here to help, so give me a call.
Have a safe, fun, and Happy Memorial Day with friends and family to appreciate those who have sacrificed their lives so we can live ours.