What Sellers Need to Know In Today’s Housing Market
If you are considering selling your house, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market exhibited over the past two years has begun to cool. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But pricing your home appropriately is critical in today’s market. Here’s why.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer bidding wars and less competition among buyers. But don’t forget – that’s compared to the meteoric market appreciation we saw over the past two years. According to the latest Confidence Index from NAR:
“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.
As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. As a Seller, you may need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening 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.”
While the housing market is gently exhaling, it’s still a sellers’ market. Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you prepare to enter the market.