The real estate market has shifted….. it actually shifted about 4 months ago at the beginning of the 2nd quarter. But, it is finally sinking in to the general public that we have more homes on the market now, with longer days on the market. The causes are due to several things including (1) prices have been steadily going up and up and while sellers are asking for more, buyers aren’t willing to pay more, (2) more sellers are putting their home on the market, thereby swelling the inventory, (3) tax rules changed, causing buyers to be more conservative with buying homes over $1 million in our market, and (4) interest rates went up.
Combine all those factors, and you have a market that is not so crazy with multiple offers like you had 6 months ago.
So how do you deal with a market like this?
(1) If you are buyer – you have a lot to choose from. You are in the driver seat! Make an offer. Work directly with the seller and make the best offer possible and you might have yourself a deal.
(2) If you are a seller – understand that the market has shifted! We see many expired listings now, by discount brokers like PurpleBricks. While the discounters have been advertising themselves heavily, they are not doing so much for the sellers. Their money goes toward television ads, not toward marketing and negotiating for the home sellers. So, houses go on the market and 6 months later become an expired listing. Don’t be like them! Hire an experienced full service agent with the staying power to withstand any market and get your property sold under the current market conditions.
Finally, don’t be alarmed. The real estate market shifts all the time. It’s like the stock market – changes daily. A shift in this direction doesn’t mean anything catastrophic – it just shifts. The low inventory situation that was happening all throughout 2017 and the first quarter of 2018 has given way to more inventory on the market and some uptick in interest rates, causing a slowdown. And that’s OK and part of the business cycle. And at the end of the day, real estate is a great long term investment and all people have to live somewhere, so we are all in the market.
Just be aware of the changes, hire a professional agent when you need to buy or sell, so you can be advised properly by someone who works in the trenches and pounds the pavement, so you don’t have to!
You know who to call: Nancy – 310-739-8272 – NancyD@century21masters.com. Look forward to hearing from you!