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THE REAL ESTATE MARKET IS SHIFTING: DOES THIS BENEFIT BUYERS OR SELLERS?

THE REAL ESTATE MARKET IS SHIFTING: DOES THIS BENEFIT BUYERS OR SELLERS?

Sunset over ocean

In the short term, the answer is both! However, sellers who have been in the power seat for many years, will need to quickly adjust their expectations and settle on the new reality of a balance of power.  As the market shifts and becomes less of a sellers market and moves towards a balanced market, buyers and sellers need to get up to speed and understand the new terms and rules.

A CASE FOR BUYERS

In my previous article: 3 SOLID REASONS TO BUY A HOME THIS SUMMER I highlighted the immediate opportunity for buyers during the shift. The shift creates a lot of confusion and questions and as others are searching for answers or slowly catching up the buyers who get off the fence now will prevail.

A CASE FOR SELLERS

On the flip side, there is also an opportunity for sellers in this  gray area. You can check out my article: SUMMER IS A GREAT TIME TO SELL YOUR HOME Even though summer is coming to an end and and kids are heading back to school the market is still in a transitional phase and not all sellers and buyers are up to speed. The buyers will start filtering back but during this transitional time inventory is piling up as homes sit longer. We are seeing more price reductions and homes are selling at or close to asking price. The market is changing.

This time of chaos and confusion creates pockets of opportunity for both buyers and sellers. Yes, sellers are losing some of their power and are not controlling the entire narrative but they still have something a buyer wants and that thing is still scarce and in high demand. Inventory is increasing but we still have historically low inventory levels. A transition into a more balanced market means more realistic list prices, offers closer to asking, sensible terms and potentially a more satisfying WIN-WIN result.

How long will this transitional time last? Difficult to tell. Mortgage starts are at a 20 year low according to an Inman article this am.  Higher interest rates are a factor. Inflation is a factor. Things are definitely changing but where they are going is unclear. I see balance vs. a buyers market but sellers need to wrap their heads around the new reality. Once the new reality sinks in and we have more sales data to support we will be in a more balanced market.

GET STARTED NOW

It’s not too late to benefit from this market turmoil. Whether you are a potential buyer or a home owner needing or wanting to sell, jump off the fence and give me a call.  I can share market data specific to your city and neighborhood and show you what a realistic list price or purchase price will look like that is based in today’s reality and not the past where buyers were offering up their first born as tribute!

DON'T LIVE IN THE PAST REAL ESTATE MARKET

In this market, as a buyer, you might not have to waive all of your contingencies or offer 10-15% over asking with a 14 day close of escrow. In fact, the seller might even offer up their outdoor furniture or pay for your home warranty!  And sellers. get over it!  Your home will  still sell and if you have owned for more than 5 years you will likely make a considerable profit.  Don’t live in the past real estate market. That market is gone for now.

The bottom line is we need to look forward and not live in the past seller-market-glory-days. Those are behind us. Honestly, the selling prices were out of control and the prospect of a more balanced market feels, well...more balanced for all parties.

 

Resources:

https://www.sf2marinhomes.com/3-solid-reasons-to-buy-a-home-this-summer/

https://www.sf2marinhomes.com/3-solid-reasons-to-sell-your-home-in-the-summer/

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