Prior to writing this blog, I reviewed a lot of stats.* Stats that were encouraging; stats that would make my buyers and sellers anxious; and still others that would make them laugh out loud. How can one market offer so many different outlooks?
The data itself has a lot to do with it. Specifically, some stats are comparing today’s numbers with 2020 numbers. Others are comparing the numbers to 2019 with the disclaimer that “2019 was a more normal year in real estate.” That being said, you likely can sense a slight shift in the market right now. I saw a post comparing it to a vehicle decelerating to 120mph from the 150mph speed we saw all Summer. Still going well over the speed limit, just not as fast.
For buyers this is actually a positive shift. Buyers now have more than 24 hours to schedule a tour, see the home, write an offer. There is still good competition, but instead of 43 buyers vying for the same home, there can be as few as 3 (depending on the area). For buyers, that can mean that their offer has a higher chance of being accepted. Keep in mind, too, buyers are tired. They have been rushing to see homes, have written at least two or as many as 10 other offers. Some buyers have left the market temporarily just to regroup! Others will return next Spring, using these next months to improve their overall financial picture.
What does this mean for sellers? Pricing well is still key. Patience will be important, too. It is hard to be on the market for a week (an eternity!) when the neighbor’s home sold so fast in June. Sellers need to be aware that buyers are not feeling the same urgency and may take longer to write an offer, or even tour, a home. That being said, as we go into the Fall we see a continued strong market. Inventory is still incredibly low at 1.4 months of supply. Interest rates are still favorable. The buyers will see the market as more approachable as it starts to balance itself out.
What can you take away from this? As a buyer or seller, don’t be afraid of this market. Ask us, be educated, understand it, so you know what to expect. We are always here to help!
Kristin Beise RE/MAX Advantage Plus
*Stats thru September 23, 2021
