While still climbing – values are no longer soaring. So, are we approaching a market that favors buyers, sellers, or something else entirely?
Conventional wisdom suggests the housing market will continue to favor sellers, at least for another year or two! Our team gives the best service to clients in selling, that’s what we’ve historically been successful at. “We market, we sell, we are not a tech company.”
“I think we’re entering an ‘opportunity market,’ which is a way of saying that it’s a market where we are able to match buyers and sellers because it’s become a negotiable market, “Having the right agent right now really gets you in front of the sellers and the property you want without realizing it.”
Many of the homes, especially in the luxury markets are still aspirational in their pricing, and many buyers don’t realize they are negotiable! The luxury markets are currently experiencing a bit of a hiccup for sellers, although it’s not believed they are heading for a deep dive.
I hear we have low inventory; however I believe just the opposite. Buyers have more to choose from because inventories have gone up and our prices have been softening! Rhetorically speaking however, it does appear there is a real opportunity for buyers!”
Economists at Zillow have previously advised that the market won’t tilt in the buyer’s favor until 2020. Aaron Terrazas, director of economic research with the real estate technology company, has stated, “sellers will still hold the upper hand for a few more years.”
“Home sellers and builders have held most of the negotiating power for the past several years,” Signs of that easing up are starting to show, but home values are still growing well above their historic pace!
Studies indicate it will take either a combination of rising incomes and declining home prices — or significant home price declines — to fully transform the current market. Some indicators suggest prices are rising faster than incomes, but it’s not nearly as out of line as the two were during the peak of the last housing bubble.
It’s our responsibility to stay abreast of the challenges, and to speak frankly to our buyers and sellers to ensure realistic expectations on both sides of the transaction!
Some top producers from RE/MAX as a whole suggest a slow-down has emerged but stressed that such an occurrence is common this time of year. Rising interest rates are adding to the cooling market, which means agents need to be aware of pricing with the homes they’re going to list.
For sellers still on the market or planning to list we’re very cognizant of pricing,” “This is not the time to push the price. Some sellers are choosing to reduce the price to attract motivated buyers before they offer on a competitive listing.”
Affordability remains an issue even as new homes come on the market, but with rising interesting rates crunching affordability further, he doesn’t expect to see as much price appreciation as in recent years.
My team is happy both ways, we work hard on the buying side and we work hard on the selling side! “Call us, for the ultimate experience, we will gain your trust and confidence and in return we want your friendship for life!?”
Dan Swing 904-671-9225