It’s happening everywhere you go, and it’s in every conversation with agents – the market is buzzing with “lots of activity”.
What does that mean? Does it mean anything?
Here’s what it means:
- Buyers are giddy about getting a 3.75% jumbo rate.
- Agents are giddy about driving around.
- Sellers are giddy about selling for more than the last guy.
Sellers and agents who have lots of showings think their house is red hot, and they demand a premium – or at least they aren’t coming off their price much.
But they should be more realistic about those who aren’t offering.
If you have 10-30 showings and only 1-3 offers, it means the vast majority of buyers thought your home was over-priced.
Just because there are a lot of lookers doesn’t mean the eventual buyer will pay your price either.
Here are stats on the NSDCC closings so far this year:
Houses Closed Under $1,000,000
SP:LP = 96.3%
Average days on market: 51
Houses Closed Over $1,000,000
SP:LP = 92.5%
Average days on market: 86
Buyers want to pay a reasonable price, and those averages show that they are being patient. Of the 192 closed sales so far in 2015, only NINE PAID OVER LIST!
All participants need to be smart about how the market works now. You get a flood of interest in the first two weeks, and then the activity drops off to nearly zero – and those occasional showings are being used to sell the house down the street. Be smart, read the market signals, and keep egos in check.
And Get Good Help!
