What on Earth is the Real Estate Market Really Doing? The Reality of Realty...
Number ONE question I get is "What is the Market Doing?" There are a variety of ways a Realtor® could answer that:
'The market is great, things are moving, prices are up'
'The market is dead, nothing is moving, prices haven't changed'
'There is nothing out there, there are no new listings, my buyers can't find anything'
'The bidding wars are back'
'Not one offer in over 2 weeks on the market'
So what is the Reality of Realty?
There is the old real estate adage that 'the market is between your ears', which I think holds true today. We are seeing bidding wars and we are also hearing crickets at some listings. The impact of the 'stress test' for financing a home has had a sledge hammer effect for some buyers. Meanwhile, prices have not really fallen and in some areas continue to rise.
Mortgage brokers have said they have a significant number of pre-approved buyers compared to last year, just waiting to find the right home at the right price. But, the inventory is not there, and it is not anticipated to be there in the numbers required to stabilize the market.
The reality right now is there is a cluster of buyers in a certain price range, and there is a cluster of listings in a different price range. What this has created is bidding wars under the $1,100,000 benchmark and slower sales above that mark. However, don't be fooled, both markets are moving. In fact, some of the really high priced properties are moving faster than anticipated.
So depending on where you are, where you want to go and what you can afford to buy or sell for, then all is fine.