How our market changes as many points remain the same.
Prices are still up, listing inventory is still down, and mortgage interest rates remain higher. Although it may not seem as though the market has changed at all, in the last few months we have shifted into a bumpier and less predictable market. What does remain consistent as we head into the Fall season: condition has crawled to the top of buyers' priority lists.
We have moved out of the crockpot market of set it and forget it; buyers are looking past their "need" to move and are taking a closer look at what they're buying. As higher (but not high) interest rates effect buyers ability to buy and ultimately their outlook on moving, first impressions carry more weight in our current market than they have in the past few years. The condition of a home in conjunction with price and location have a direct impact on how long it will take to sell. We continue to see this theme in the feedback from buyers in all price ranges, with points such as "needs too much work" or "it's outdated" or "we are worried about the life of the roof." Buyers have spoken and condition is a priority.
Where Lack of Inventory Matters
and why it's a great time to sell, still.
That being said, the statistics also highlight the continuing, underlying housing issue: lack of inventory. While condition has moved up the priority list, lack of options for buyers still hits hard in the certain price points and desirable locations. The days on the market averages far lower for homes listed under $250,000 with multiple offers and over asking sales prices. The days on the market for price points over $250,000 are (on average) longer but have still trended downward throughout the summer.
Taking each of these factors in to consideration, it is still a great time to sell. The sale to list price ratio remains high with average sales closing at 99% of list price or HIGHER.
Whether you are buying or selling, having the right approach with the right team behind you is key to your real estate success. Put Team Clancy's years of experience to work for you and get your most pressing questions answered before you lose precious time sitting on the market.
All information deemed materially reliable but not guaranteed. Provided by Greater Kalamazoo Association of Realtors.
Buying a Home in a Traditional Market
The lack of competition on both sides of the for sale sign offers a slight relief for buyers, creating a little more wiggle room to shop. Although finding a home that fits your needs and budget can still be a challenge (some price points and ready-to-move-into homes are moving quickly) higher interest rates are keeping some home buyers browsing online making the competition a little lighter. With the right real estate team behind you, you can find value in our current homes for sale.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. The market may be shifting to a more traditional style but you still have to be prepared. Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your home/property search. In a normal market, you leave room for negotiation, your initial offer is often at the bottom of that range. However, in a seller's market, one can’t expect to go about it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at that property. In a seller's market, we tell our clients to be prepared NOT to get a 2nd opportunity to make an offer or negotiate. Make certain your offer is a strong contender, free of unnecessary contingencies as well as risk & uncertainties that will make the sellers uncomfortable. MAKE YOUR OFFER EASY TO SAY YES TO!
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan BEFORE beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Most offers have 3 contingencies: loan approval, appraisal acceptance and satisfactory inspection results. These contingencies, if not fulfilled, allow a buyer to terminate a contract to purchase and retain all of their deposit money. There’s nothing worse for a seller than having their property tied up for a long period only to have things fall apart. Not having additional or high risk contingencies, minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is NOT contingent on selling your current home. With buyer competition strong and multiple offer situations prevalent, sellers will likely choose to pass on your offer (even if it is higher than the others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.