Understanding Today’s Buyers
Many assume buyers are not actively shopping due to rising interest rates. However, the numbers tell a different story. Despite increased interest rates, buyer demand remains steady, and inventory levels are creeping up. While the frenzy of multiple offers has subsided, buyers are still making moves, albeit more cautiously and wisely.
The Buyer’s Market Today
Buyers today have the luxury of time to evaluate their purchases more thoroughly. Consider your current mortgage payment and imagine entering the market as a buyer now. Typical mortgage payments are significantly higher than they were in the low-interest-rate environment. This includes higher costs for fire insurance, which continues to rise. Buyers are becoming more patient, savvy, and particular about what they are willing to pay each month.
Seller’s Concessions
In the past, homes could sell quickly without concessions. That’s no longer the case. Today’s buyers often need concessions to make the move feasible. Many buyers are keeping their current homes with 3% mortgages and becoming landlords. This gives them less money down when buying a new home.
If your home is unique and special, it might still generate competitive offers. However, for most homes, negotiations are tougher, and sellers need to be flexible to avoid staying on the market for months.
Evaluating Your Home’s Worth
Put yourself in the buyer’s shoes. If you were making a mortgage payment today, what would be your expectations for the house’s condition? Consider the estimated payments based on different price ranges. Would you choose a home where the seller offers to buy down your interest rate to reduce your monthly payment?
The Reality of Selling in Today’s Market
Selling a home in today’s market means understanding the buyer’s mindset. Buyers are looking for value and justification for leaving their lower-interest-rate mortgages. As a seller, you need to be prepared to offer concessions and ensure your home stands out. This might be disappointing, but it can also lead to quicker sales and less time dealing with the pressures of the market.
Key Market Statistics for Sellers
Current Inventory Levels
The number of homes available for sale has increased by 14.7% compared to last year and by 6.1% compared to last month. This rise in inventory means more competition for sellers, but it also indicates a healthy, active market with more options for buyers.
Property Sales
June 2024 saw a 26% decrease in sold listings compared to June 2023, and a 6.9% decrease from the previous month. Despite this decline, the market remains neutral, indicating a balance between buyers and sellers.
Pending Sales
The number of homes under contract (pending sales) increased by 3.6% from the previous month and remained the same compared to last year. This stability in pending sales suggests steady buyer interest and activity.
Days on Market (DOM)
The average days on market decreased by 13.2% compared to last year, with homes now selling in an average of 33 days. This downward trend indicates a favorable market for sellers where homes are selling faster.
Renting vs. Selling
Sometimes, selling might not make sense right now. If you’re currently in a low-interest mortgage and your home can generate rental income, it could be worth considering renting it out. While being a landlord might not have been your plan, it can be a smart move for building wealth through real estate.
Real-World Example
I recently had a client who needed to offer significant concessions to sell her home. Although it was disappointing at first, three months later, the homes we were competing with are still on the market. Meanwhile, my client is enjoying her freedom, traveling the country in her RV. Sometimes, making concessions can be the difference between moving on with your life and being stuck with an unsold home. When considering the holding costs for other sellers whose homes did not sell—many of which were vacant—it’s clear my client made the right decision, and those concessions don’t seem so bad in hindsight.
Let’s Discuss Your Options
If you’ve tried to sell your home before without success, it might be time to reevaluate your strategy. Offering concessions could make a significant difference. Let’s meet and discuss your current opportunities, taking into account today’s market conditions, not how things were two years ago.
I have 19 years of experience as a full-time licensed real estate agent, and I’ve seen tougher markets than this.
Be encouraged that buyer demand is steady but be aware that the number of homes on the market is likely to rise, increasing competition. Pay attention to your home’s condition—buyers are scrutinizing them more closely to justify leaving their low-interest payments behind.
I am here to help and would love to meet with you to discuss the next steps for your property. Not only will I provide you with an accurate valuation, but we will also explore all available options together. I truly believe in being your partner in real estate, and I approach every aspect of my work with this mindset. The advice I give you will always reflect this commitment.
Interested in your Nevada County home value? Request a FREE Valuation of your home and let’s discuss your opportunity to sell your home.
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