Everyone is talking about the housing market softening, but what does that really mean? After a booming housing market in the past year with recordlow inventory and soaring home prices, it looks like the market is finally starting to soften.
But don’t mistake this as the start of a crash or even home prices coming down. We use the word soften very lightly, as the market is just starting to soften but we are still in a very strong seller’s market.
PRICE REDUCTIONS
As we see inventory beginning to increase, we have started to see an uptick in price reductions. In a normal market, we will see around 400 to 500 price reductions a week in the greater Phoenix area, so we are still way below that at only 200 a week in July, but it is increasing and a change from the market just a few months ago.
It’s not only the added supply that has created price reductions, but some sellers who overprice their homes mistakenly thinking they can ask way above the current market value. That may have been the case a few months ago, but certainly not now.
BUYERS
Finally, you can breathe a little sigh of relief as the inventory starts to increase and buyers are not as eager to get into bidding wars and pay way above the asking price. Don’t get me wrong, we are still seeing bidding wars, just not as often and with fewer multiple offers.
If it’s a great house priced well, you will likely still have to bid above asking and be competitive, but the craziness is definitely starting to wain and more realistic prices and terms are coming back.
SELLERS
The key in the current market is not to overprice your home from the start. The last thing you want to do in any market but especially today’s market is having to do price reductions. This gives a red flag to buyers that there is something wrong with the house or it was overpriced to begin with, and they may offer below your current price.
The key in this market is to sell as quickly as possible and still get multiple offers. If you are planning to sell anytime in the near future, now might be the best time to list your home. Feel free to contact me for a home evaluation and more information on the current market conditions, and how to sell your home for the highest price
If you would like more details and information on our current market and market projections, or on buying or selling in today’s market, please feel free to contact me anytime.
Lorraine is a Multi-Million Dollar producing agent, has been a full-time Realtor for over 13 years, is an Associate Broker of KOR Properties, a Certified Negotiation Specialist, and is on the Professional Standards Board. You can reach Lorraine at (602) 571-6799. Visit Homes2SellAZ.com and Instagram/LorraineRyall
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