Temperatures rising, real estate market cooling….just a little bit
As we barrel towards July, we are seeing numerous signs of a little more balance returning to the market, which is a welcome development. One key indicator I track is the median days on market, which is up to 7, and the average days on market, which is up to 19. This tracks with all the anecdotal evidence we are observing here at RE/MAX Gateway. Properly priced houses prepared for the market and marketed aggressively are still going relatively quickly, and some are still in multiple contract situations, but others are taking a week or two (or three) to sell.
What other signs are we seeing of the tapering market? The vast majority of contracts now contain at least one contingency, and often the usual suite of them. Home inspectors are busy once again. All of this is good for the market and the industry writ large. For home buyers, this means you don’t have to run out to the car and write your offer after a showing, and you can actually get into an open house to see the place! For home sellers, it means it’s still time to make some money, but don’t get out over your skis on pricing. To wit, last week we had 18% of listings take a price reduction, up from 13% the previous week. It’s important to note these folks are NOT selling for less than their home would have last year, as median home prices continue to rise (albeit at a slower pace). It’s just that they will end up selling for less than they would have if they had priced properly and let the market speak. These are the folks who priced at the “bid up” price or higher. On the other side of things, those pricing at the “get bids” price are getting contracts more quickly and are seeing their contracts come in above list.
So if you are a buyer, there are opportunities out there so get in the game! If you are a seller, be strategic to maximize your gains. In either instance, reach out to me and together we’ll make sure your next real estate transaction is your best one!
It’s a good life.
Chris
