Transition in the housing market: just like waves, the market ebbs and flows
Recently, we have begun seeing a transition occur as homes that once flew off the market are now having price reductions. Inventory is beginning to grow which is a welcomed relief for buyers. Does that mean it has switched completely from a sellers to a buyers’ market? The quick answer is no. What it does mean is that sellers, depending on the product you are selling, will want to consider the change of tide that has now begun.
Anyone who is putting their home on the market these days thinks that it will sell over the weekend and at the beginning of July, that was still true. However, it doesn’t take long for evidence to show when a change is in the air. With the media touting incessantly about homes flying off the market and no inventory to be had, sellers whose homes do not sell in such fashion are left to wonder what is wrong with their home. I would say the question shouldn’t be “what is wrong with the home” but “what is the price the home is selling for given its condition location and the market?”
When there is such a vast difference between the selling price and sold price, it skews data and confuses sellers. They believe they should list their home for what the nearby home sold for. That is however not the recommended step. The $100,000 difference between the list and sold price is a very large leap and savvy buyers will realize that if the next home starts their price with the $100k included, then the home is overpriced.
A seller may say, “I will wait for the person who realizes my home is worth X”. Although leaving a home on the market can often result in buyers wondering what is wrong with the home and lead to the home sitting and selling for even less than market. The lesson should be to listen to an experienced agent who works in the business, day in and day out. The media often inflates or lags behind what is occurring in real time. A good agent is worth their weight in gold truly.
If you would like to learn more about real estate and move management services, please contact Kimberly. Call 971-227-1302 or visit www.pdxmaturemoves.com.