The summer Real estate season is at the halfway point. It has been a very complicated market throughout. Inventory of existing homes for sale is low. Mortgage rates have been rising & seem to be stabilizing. There is still uncertainty on the national economy which weighs on real estate decisions. With this as the backdrop, here are some personal observation regarding the housing market conditions.
Sellers
1) Proper pricing has been the key element with all my listings. The strategy of pricing at the level near local comps paid off. The sellers were rewarded with multiple offers well above asking.
2) Concessions back on the table. Home inspection requests are no longer a deal breaker. Some assistance to the buyers may be necessary to garner the best offer.
3) Some sellers were lucky enough to have financed or refinanced while interest rates were historically low. The new normal will be rates closer to 6.5-7.0%.
4) In most cases, time on the market is short.
Buyers
1) The fierce competition of the Covid period has eased. But buyers need to bring their best offers to the table. The market is not set up for deeply discounted offers.
2) Seller's repair concessions have been mainly limited to Health & Safety items. Minor repair requests generally have not been considered.
3) Using an Appraisal Gap has been a handy tool in making a quality offer. Sellers get a higher level of security knowing buyer has fully committed to closing the deal.
4) Buyers need to bring their best offer to the seller. If the home is The One, the offer needs to be all in.
5) In order to insure the best mortgage rate, it is necessary to shop around. Mortgage rates have been fluctuating, but mostly on the rise. It is difficult to see a falling rate scenario. Our mortgage partner has some excellent programs.
6) It is also difficult to see a scenario of falling house prices. Low inventory is propping up values.