If you’ve followed real estate or ever watched the news, you probably know things go in cycles. Spring is crazy busy in most markets. The heat of summer slows things down. After Labor Day, things perk up a bit. The holidays? You guessed it- things slow down again. After the holidays, they pop up again. And the cycle rolls on…
So, it’s probably no real surprise that even though our market has remained pretty darn robust, even as many markets across the country are softening in the wake of all sorts of economic uncertainty, things are slowing just a little. Do I think anything is tanking, crashing, or any other dire sounding word? Absolutely not. The one number that is always a fairly good metric is the “months supply,” which is how long it would take to sell all the homes to the buyers currently in the market, if no other homes came on the market. A balanced market is 6 months, and we are (in the Richmond Metro) currently at 1.9 months of inventory. There’s no tanking happening anytime soon.
In the moment, in the “field,” here’s what I’m seeing. Where we would have frequently seen 15-20 offers on properties a year ago, we’re seeing more 4-5, and in many cases, just one or two. The homes that are selling quickly, and for more, are usually the ones that are “DONE.” They don’t have visible issues, they’re clean, painted, and often staged or well styled. Oh, and they’re priced well- not “testing the waters” to see how high they can go. That’s still happening.
What else is happening? We’re seeing more price reductions. This is one of the reasons pricing is so crucial, and just because your neighbor’s home sold 10 months ago with 10 offers, doesn’t mean you should price yours higher.
We’re seeing more homes “make it through the weekend,” when they would have been gone by Sunday a year ago. All of them? No. Plenty of homes are still selling quickly, but again, they’re the ones that are outstanding, not run of the mill.
So, if you’re a buyer, that’s definitely important to know. It doesn’t mean you can lowball, and it doesn’t mean that every home is equal. What it does mean is that now more than ever, having an agent in your corner who knows what’s going on will give you a huge leg up, and you just may get that home that seemed unattainable a while ago.
If you’re selling, same thing- have the counsel of someone who can help you get your home from everyday to “WOW, I have to have this house!” is going to make all the difference in what you walk away with after your sale.
Do you have questions? I’d love to help. Reach out and let’s talk.