What Sellers Need To Know in Today’s Housing Market
If you're considering selling your home, you may be aware of the current slowdown in the property market. The peak frenzy the market saw over the previous two years has somewhat subsided, but it is still a sellers' market. The good news is that you haven't missed your chance to sell your home and move on because there are still keen buyers out there. However, you must appropriately price your home for the market today. This is why.
The National Association of Realtors' (NAR) Chief Economist, Lawrence Yun, says:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It is true that buyer demand has decreased over the past few months as rising mortgage rates have increased the cost of home ownership. The result is fewer bidding wars and less competition among buyers (see visual below):
But keep in mind that this is in comparison to the extremely heated market we witnessed over the previous two years. The most recent NAR Confidence Index indicates that:
“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
Even though the pace is slower than it was even a month ago, serious buyers are nonetheless actively searching for homes and are purchasing well-priced ones. In fact, according to the Confidence Index, the typical home sells in just 14 days.
If you want to sell your home, make sure you and your agent determine the right price for it in the current property market. It's critical to recognize that current market is different from the one from the previous year as buyer demand drops. Even today's market is not what it was a few months ago. Still, it is a sellers' market.
Consult a real estate expert for help if you're prepared to sell your home. In some circumstances, you'll need to modify your expectations in order to accommodate the current state of the market. Deputy Chief Economist and Interim Lead at CoreLogic Selma Hepp discusses what happens and what it means when you sell:
“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced
To sum up
The housing market is still a sellers' market even though it has subsided from its high fervor. As you prepare to enter the market, let's connect so you know what's happening with buyer demand and house prices in our neighborhood.