Bricks, mortar, fear mixed up in a new real estate chess match and stalemate means no check.
O.K., I think I have figured out our current market. Everyday I check the multiple listings to see what is new on the market, what has been marked down and who has given up trying to sell. It is important. Someone may actually call hoping to buy or sell a home and I like to have enough knowledge to guide them in the right direction.
Today there are twice as many listings as there were this time last year. I checked public records and we have not seen a double in population in the last year. Babies are being born, people are dying and folks continue to be transferred into and out of the area. Hmmmm.
Prices are leveling off and even dropping below sales figures of a year ago. Fear is taking hold of the market. Those that are attempting to sell are discovering that unless they price their home correctly, they will not get any offers. Those that do price their home correctly are finding out that buyers are still coming in with an offer that is a bit lower than hoped for and the buyers want to actually be able to have the home inspected. Some people are even realizing that they will have to make needed repairs to sell the home.
Buyers are sitting on the couch. Nobody wants to buy at the top of the market. Nobody wants to buy at the top of a market that may see values go down a bit. Interest rates are rising. Some buyers are paralyzed by the notion that last year they could have gotten more money for the monthly payment they can afford.
It is an emotional stalemate and no checks are being passed from buyers to sellers.
There is hope.
At some point, sellers will become educated about the shift in the market and they will sit with a Realtor that understands the market and they will price their home to sell. They may not realize the same gain as folks did last year, but they will sell their home and they will move into a nicer home. They will be able to buy more home for the dollar this year than they could have last year! If they price their home favorably, they may even receive multiple offers. It is still occuring everyday on homes that are priced for the current market.
At some point, buyers will realize that there has not been a better market for them in a long time. While interest rates are going up, they are still well below what we have seen in the past 20 years. As a matter of fact, they are half of what they have been in the not so distant past. It may be true that your monthly amount does not buy as much house this year as it did last year. The facts are, you can get more house for your money today than you could have gotten last summer. If a buyer works with a good Realtor, they will benefit. Any dip in property values will be short lived. It will not take long for your home to increase in equity. Interest rates are always in flux. When they take a downward turn in the future, you can refinance your home and at that point you will be in more house for less money. It is a great time to buy.
F.D.R. may have said a lot of things, but he was never more accurate than when he shared the following – “We have nothing to fear but fear itself”.
Just remember, those that step boldly forward are rewarded with the spoils of those that feared to step at all.