Back now, with our very special show ‘A Market Shift,’ looking at what it might mean to you, if your area changes over – from a seller’s market to a buyer’s market.
It is happening in many markets across America….as the red hot price appreciation, combined with rising interest rates, have turned off some buyers. Buyers who say they’ll just wait and see. Add to that, an increase in the number of homes for sale in many parts of the country – and we could, in fact, be seeing a shift from a seller’s to a buyers’ market.
Now in our first hour we talked about what that might mean to buyers. And for them, it’s generally good news. Less competition, more time to consider the purchase, and less chance that they’ll have to pay way above the list price of a home.
Now, let’s talk sellers.
For many years now, the shortage of homes for sale has made this – a solid seller’s market. It’s just simple supply and demand. Not enough homes for sale, and a flood of buyers. Sellers have had it pretty good, in many price points, because the fierce competition among buyers has helped them sell their homes for the maximum profit in the minimum time. Sellers who could set all the rules.
Home inspection? Forget it.
Financing contingency? No way.
And in some cases, an appraisal? Forget that too.
Yep. They had a pretty sweet ride. And remember, it’s just business. With so many buyers willing to do anything to get a house, the sellers held all the cards.
But what happens if the market changes?
Well first of all, it might not change in your area. Every real estate market is different. And the only way to know which way YOUR market is headed, is to ask the local market expert. Your Realtor.
But if the market does shift….remember, it won’t happen overnight. It would be a gradual change….from a seller’s market – to a balanced market – in which both sellers and buyers hold some of the cards – and then, possibly into a full -on buyers market. The full shift – iof it happens – could take years. So no need to worry.
But in its initial stages, you might see a slight drop in pricing. When the market was in a full-out frenzy, any buyers in some places would pay anything for a house? Experts say that premium pricing is usually the first thing to go. You’ll probably get market pricing – that is, what your home is worth. But possibly not premium pricing – that is, wildly above asking price.
Another thing sellers might notice, is it could take longer to get your place under contract. DOM – Days on Market – could begin to increase….meaning that putting up a for sale sign, and getting an offer that day? Might not happen. Might take longer.
Sound familiar? It might, since that all adds up to a balanced, normal market.
But there’s another thing sellers can probably count on….and that is, having an easier time finding their NEXT property.
You see when we were squarely in a red hot sellers market, your place might sell, fast and high….but could you then find your next house? In some cases, no! But if in fact, the market shifts, that part of the move should happen easier. That’s good for you.
And also – remember the fundamentals of market parity. When you sell your house way over list, and buy another in the same market? That place might be way over list too. So if you sell your house for a somewhat lower price, chances are your next place will be somewhat lower also.
Finally, remember. You can’t control the markets. A shift from a seller’s market to a buyer’s market is an economic shift, that involves forces far greater – than you. You can’t dictate it.
But as I said, even if the market in your area moves away from sellers, and starts to favor buyers, there’s something in for you, regardless. Talk to your Realtor. Ask them what’s happening in your area. And as a seller, whether you still hold all the cards…or whether that’s starting to change…as in a market shift.