“It must be easy being a real estate agent right now. Everything sells way over asking in under a day.”
Easy isn’t the word I’d use to characterize this market. Interesting works better!
With the incredibly low interest rates we’ve been enjoying, some have characterized this as a time of free money. While the money isn’t free, using it is economical and has increased the buying power of many. I always warn clients to look at what they can afford more than what they are approved for.
Available inventory has been a recurring theme. We are still running under the 2020 inventory levels, albeit the inventory level is increasing. Inventory in 2020 was consumed almost immediately, and we’ve seen a tempering over the summer of 2021.
“That’s the crash coming, right?”
I’m seeing no indication of a 2008-type slow down. The 2007–2008 issues were caused by lending practices giving away to the subprime mortgage crisis. What I’m sensing now is a slow return to a more normal market.
Buyers should rejoice. An increasing number of homes is giving astute, nimble buyers opportunities. Yes, people are getting into homes. And without having to pledge firstborns to secure the house. Yes, the astute buyer will use a Realtor to navigate the market and hit the sweet spot with an offer.
“OMG, we’ve missed the market.”
I’m not a fan of market timing and continue to tell sellers the best time to put their home on the market is the day they do so. We are entering a period when you may not have 75 people standing in line for an open house, and you may only get 2 offers rather than 20. As a seller you need to know it is still a sellers’ market and appropriately priced properties are still selling. Looking at the house down the street selling for an astronomical price and adding an astronomical number to it is not going to be a successful pricing strategy. You need to examine comparable homes, what’s on the market and understand what pricing bands are showing activity to price your home. A Realtor can help with this.
“When are the deals coming back?
There’s a sense the eviction bands being removed are going to prompt many foreclosures and create a down draft in the market. Inevitably some property owners will find themselves in trouble and have to liquidate their assets. We still have more demand than inventory, and I’m not seeing a major sell off creating great swaths of distressed property. Obviously, a global or local calamity could impact this. That said, if someone told me pre-COVID we’d have a robust real estate market with a pandemic, I would shake my head thinking people would stay isolated. People are still upsizing, downsizing, having kids, deciding not to live together, deciding to live together, etc.
“So, we are going back to normal?”
My sense is we are heading to a more rationalized real estate market in a smooth manner, with everyone generally coming out fine.
Nothing wrong with that!
Here is free app for your phone/tablet tied directly to the MLS https://www.homesnap.com/Gary-Kelley.
Gary is heard on WCRN AM 830 discussing “All Things Real Estate.”
If you need advice on selling your home or buying a new one, give us a call 508-733-6005.