The housing market is shifting. Since the beginning of the year, mortgage rates have moved up. Home prices are still increasing just at a slower rate. These higher rates and prices have reduced the number of buyers, while sellers have more competition as more listings hit the market. In light of these developments, here are five things sellers need to know, according to real estate experts.
- There is a new reality in the housing market. The above points explain why the housing market is shifting to fewer buyers, more sellers, and slower price gains. The consequences: you’re probably not going to see offers within a few days of listing, or multiple offers, or a sale price way over asking.
- This is not a disaster. There still is an inventory shortage, and there are plenty of buyers who can afford a home at the new interest rates—it just might take a little longer to make the sale.
- Price is critical. Now more than ever, it’s key to set the price correctly from the start. Homes are priced ahead of the market, so when price gains are slowing, the price must reflect that.
- Home preparation is key. Having less competition, buyers can now afford to be picky. That means they choose the nicer homes first. Declutter, repair, upgrade, and clean.
- Offer financial incentives only as a last resort. Be patient, as things are happening more slowly. Avoid being quick to give money away, but if you must, after a reasonable period, do a price reduction, offer to buy down the buyer’s interest rate or credits for closing costs.
Even in a shifting market, the basics still hold. If the property looks great and is priced realistically from the start, it should sell without too much trouble.
If you are thinking or selling or buying, give me a call! I am here to help you through the process.
Mary Cockburn/505-639-2090/MaryCockburn.Realtor@gmail.com
