Right now, we are experiencing yet another unique real estate market. Despite what you might expect, we're seeing multiple offers across all price categories, with the under-$400,000 market looking particularly intense. Simultaneously we are seeing homes that should be long gone linger.
To illustrate this, we recently listed a home at $235,000 as a courtesy for a client. Within days, we had 53 showings and 17 offers, pushing up the price to $295,000. Interestingly, the winning bid wasn't the highest offer - it was a lower-risk cash offer that provided the best overall terms for our seller. The under $300,000 market remains like the wild wild west. Really challenging for first time home buyers. That was nuts!
Current Market Dynamics
While inventory remains lower than ideal, we're noticing some interesting patterns. With beautiful summer weather, many people are focusing on vacations and/or holding tight due to perceived market uncertainty. We're seeing sellers, who have grown accustomed to homes selling within days, becoming anxious when their homes don't move as quickly.
If Your Home Isn't Selling
For those currently on the market, here's what you need to know:
-
No showings or offers typically mean it's time to pay attention to feedback/No activity IS feedback
-
We're seeing more price reductions than we have in quite some time
-
Patience is key. Give your listing 30-60 days to find its market
Looking Ahead
We're paying close attention to potential interest rate cuts. While there's much discussion about what constitutes a "good deal," we believe even a modest reduction to 6% could significantly impact the market. The current administration is pushing for even lower rates, which could bring many buyers and sellers off the sidelines.
Why Now Might Be the Right Time
Due to this brief window of opportunity we believe now is actually a wise time to enter the market, but with an important caveat: Success requires proper preparation. This is not a market that rewards a casual approach. Homes need to be:
-
Thoroughly cleaned
-
Decluttered
-
Well-maintained
-
Properly prepared for sale
The current market demands attention to detail and serious commitment from sellers. While we're working extended hours to keep up with demand (back to 80 hour work weeks), we're seeing that properly prepared homes continue to attract strong interest and multiple offers.
Remember: This isn't the time to be casual about listing (in my mind it is never a market to be casual about one of your largest financial assets). Those who take the time to properly prepare their homes and price them correctly are still seeing excellent results. It is totally a crazy busy and a softer market. Two things can be true at the same time…Especially true right now in the real estate market.
For Buyers…You have more power than you have had in a few years. If (and I am pretty certain they will) the interest rates drop that power will likely change back to the Seller. Now is the time to snag a potential opportunity.
As always, my team and I are here to help you navigate these unique market conditions with the attention and dedication your investment and you deserve. The market changes by the day. We are here for it and you!
