Is the party over? Is the housing market still a seller’s market? It turns out we are in a very price-sensitive market. Let’s take a look at what has happened just this year.
How Has the Market Changed in 2022?
In May, we had a hard stop on the escalation of prices that happened in 2021. So in a sense, the Premium Pricing Party of 2021 came into the New Year and then stopped in May. What most consumers miss though is that the price escalation of 2021 and early 2022 held and gave us a new marker to start with that is much higher than 2019 and 2020 but is not escalating the same way it did in 2021, which we all know would not have been healthy overall for any market. What was different about this fast escalation is that it did not drop in the same fashion that it grew. That’s good news.
What Sellers Should Focus On
Now more than ever, sellers need to evaluate their pricing when coming to the “new market”. Many sellers still choose to make the mistake of overpricing their homes to “test” the market or pricing their homes based on the escalation that occurred in 2021 that ended in May 2022. A savvy seller looks at all the variables and pays close attention to buyer habits. Right now, the prices are still up, just not as much as they were going up last year. The bottom line in putting a home on the market is that there is a big difference between having your home “on the market” and “in the market.” If you want to sell your home, then price it to attract the pool of home buyers in the market.
Even in a seller’s market, overpricing your home can cause you to miss potential offers and potentially miss the “current” market that seems to be rising, just not as high as it rose last year. You risk buyers thinking that you’re not serious or are holding out for your reach price. You may also be pricing yourself out of the pool of buyers who are obtaining financing. If you are a serious seller, it’s a good time to get realistic and not “hope” you can get an unrealistic price. As many pundits will tell you, “Hope is not a strategy.”
What Types of Homes Get the Best Offers?
There are still some properties that receive multiple offers. The homes that are still selling fast typically have one of a few features: highly renovated homes, with a focus on kitchen, bathrooms, and flooring, a new roof, current impact glass/hurricane protection, and of course Location.Location.Location (water, golf, ocean, or Intracoastal) Renovations matter a lot in this low inventory market. With a huge deficit of new construction for the high buyer pool, and the fact that buyers realize the value of the work, a freshly renovated home is much more valuable. Add to that the time and continued rising costs for renovations, product scarcity, and the difficulties in finding good, reputable and timely contractors will make a freshly painted, newly landscaped, and updated property much more attractive.
How to Secure a Good Offer
Whether it’s a buyer’s or seller’s market, home preparation and presentation are key to securing your best offer. We all have to start to come to this realization as rates continue to be on the rise, affordability will play a part in it. Higher rates mean lower qualifying mortgage amounts and lower buying power.
Invest in the Right Home Improvement Projects
Here's what you can do to hedge the reset: Renovate, paint and put some elbow grease and DIY projects into your home preparation repertoire. As the clunker homes sit on the market, getting stale, like a supermodel with spinach in their teeth, the trick is to present your property in its best light.
And here is how we can help: Our win-win game-changing program is RealVitalize.This program is again a necessity for sellers to continue getting top dollar. Let the program do the work for you, with a zero percent interest rate on the cost, paid at the closing. The ball is in your court. Renovating & recoup is our best advice.
Is Now a Good Time to Buy?
Yes, it is still a great time to buy! Yes, Rates are up and we still have low inventory, but growing as more sellers are coming to the market. The best time to buy and sell is in a stable market or quite frankly, when you need to or want to buy or sell. At the end of the day, we live, work and play in our homes. You can’t live, work and play in any other investment that historically rises over time, albeit at different rates. Can you live in your stocks or really say your car has increased in value?
Jump into the real estate market today so you don’t look back and say, “You wish you did!” We are off to the races again and the party is still a really good one!