The real estate market today looks a lot different than the real estate market from a few months ago. If you have decided to sell your home, it is critical that you understand the current market and how it has changed so you can make the best decisions for you.
First up: the most obvious — mortgage rates are up. During the pandemic, we saw record-low mortgage rates. Some even dipped below 3%. Now, mortgage interest rates are above 7%, which has priced many people out of the market and made potential buyers more cautious.
The pandemic also ushered in a period of low-housing inventory. The uncertainty made some owners reluctant to list their homes. Plus, building slowed due to a variety of reasons. This drove up the prices of listed homes and led to many bidding wars. Now, housing inventory is increasing, which may diminish bidding wars, especially when coupled with high interest rates.
Previously, low inventory also drove prices up, with many buyers bidding well over asking price. More homes, coupled with high mortgage interest rates, probably means buyers will not be offering more than the asking price unless they are purchasing in a hot market.
I am also seeing homes stay on the market longer. Again, buyers have more choices. That means they are taking their time and shopping around. They are more risk-averse, which leads me to the next big difference in today’s market — an uptick in contingencies.
During the pandemic, buyers were purchasing homes sight unseen. They would waive inspections when possible. Now, buyers are more cautious and want to make sure they are getting what they are paying for.If you are considering selling your home, the new landscape may seem a little disheartening. But, honestly, it is coming back to what we consider a normal market. We have been here before. A time-tested Realtor can help you overcome these challenges and sell your home, regardless of how the real estate market winds are blowing. Contact me today to learn more.