Think the real estate market is getting back to ‘normal”? Whatever normal was, you can probably forget about seeing that again.
Here are a few reasons why:
1. We have a new relationship with foreclosure – it’s no longer a threat, it’s something from which the government should save us.
2. Interent tools disseminate lots of data, but their primary use is to alert buyers about new listings. This has scrunched the selling period from months to minutes – and it catches most sellers off-guard.
3. Prices have not only bounced back, in many areas they are at all-time highs. Wow, that didn’t take long.
4. Comparable sales nearby don’t seem to matter as much as winning – and buyers are regularly paying well over list price to get a house.
5. Cash buyers are everywhere, and most are owner-occupants. In North SD County’s coastal region this year, we have had 25% of the buyers pay cash for their house (579 out of 2,345) – in an area where the average sales price is $1,226,056!
6. People who were underwater have stayed put, instead of leaving.
All of the above has caused the inventory to tighten dramatically.
But we will have our cooling-off periods, like now. Summer is wrapping up, school is underway, and buyers are hoping that some of the long-time listed properties might lower their price.
We will have some ebb and flow of sales and pricing, with winners and losers. Both sides are grappling with how to handle their own decision-making given the lack of inventory – which could last for years. But all considered, the market is remarkably balanced at this time!
Today’s tip: Sell when everyone else isn’t.