We are experiencing the first increase of days on market for homes since the beginning of the pandemic, together with a little more housing inventory. So, what does that mean for Sellers and Buyers? Are we transitioning from a Seller’s market to a Buyer’s market?
For Sellers, good news, we are still in a Seller’s market even though we are beginning to encounter longer days on market and a move to stability in pricing. Meaning your listing price needs to be what the current market will accept, not the bidding war pricing of days gone by. Your home’s condition needs to be the best you can possibly make it, for the days of buyers waiving inspections and paying for appraisal gaps are most likely, for now anyway behind us. More good news, as a Seller today you are still benefiting from the bidding war market that raised housing prices, so if you are thinking of selling jump in now and take advantage of the current market values. I encourage Sellers to review your Market Analysis with your REALTOR® and to seriously consider their counsel regarding pricing.
For Buyers, good news, you now have some breathing room to make decisions. Time to even make a showing appointment without rearranging your entire world so you don’t miss out. You will have less worry about bidding wars, although in some situations they still do exist, just less often. It is less likely you will have to pay over asking price or waive inspections and contingencies. I also encourage Buyers to seek counsel from your REALTOR® regarding the condition of the housing market so you can make an informed decision regarding and an effective offer when you find the right home.
As a point of perspective, time on market at this time can be misleading because our comparisons are year to year, and July 2021 was like nothing we have ever experienced, it was a red-hot crazy market. A market where REALTORS® were sitting out in front of homes with their Buyers waiting for their turn to show the property and then racing to get the Buyers offer in to be considered by the Seller together with the other 20+ offers. I share this to remind us we are still in a great real estate market for both Selling and Buying and that homeownership is still one of the greatest wealth building securities we can provide for ourselves. There are no current indicators we are going to see any pricing declines as we still do not have enough housing inventory.
One of the smartest individuals I know when it comes to the economy and housing is Lawrence Yun, Chief Economist of the National Association of REALTORS®. On August 11th here is what he had to say. “Inflation eased slightly in July, which could bode well for the housing market in the months ahead,” says Lawrence Yun, chief economist for the National Association of REALTORS®. Overall, inflation slowed from 9.1% in June to 8.5% in July, but prices for food and rent continued to climb, per the Bureau of Labor Statistics’ Consumer Price Index. But could the worst of sky-high inflation be behind Americans? Yun thinks so. “If there is a sustained decline in gasoline prices and more production of apartments and single-family homes, consumer prices will pull back, encouraging the Federal Reserve policy to be less aggressive,” Yun says. “Mortgage rates will fall.”
Empowering people with information so they can make an informed decision regarding buying and selling real estate is who we are. For assistance Call your local REALTOR® today.
Wishing all the children, families, and teachers a very blessed school year. Happy Back to School Hernando!
