Pricing Your Home
The peak of home sales seems to have been in March according to market data. By June, we experienced a declining number of sales, a lower median price and more home inventory on the market. Many REALTORS® reported a significant drop in home showings as well.
Contract activity dropped 28% the last 6 weeks.
We have seen a 220% increase in supply over the past 15 weeks. We currently have 2,985 homes on the market. A normal market is 5,000. We are in the arena of attempting to rebalance the housing market. Conditions are still in your favor even though the market is cooling. If you work with an agent to price your house at market value from the beginning, you will find success when you sell your home today. While buyer demand is softening due to higher mortgage rates, homes that are priced right from the beginning are still selling fast. That means your window of opportunity to list your home has not closed. Average days on market is 20 days if you are priced for the market at hand.
On average, if you are getting showings and no offers, you are roughly 5% overpriced. If you are getting no showings and no offers, then you are roughly 10% overpriced. Of course, if you were just testing the market and throwing a price out there to see if it sticks, then you really need to consult with your agent to determine what a willing buyer will pay for your home in this market.
I have seen price reductions upwards of 20% in the last month.
Sellers are now finding that they are going to need to do repairs or offer incentives to buyers – credits for closing costs and/or credits to buy down the buyer’s interest rate, especially with the rise in interest rates this year.
Economists are still predicting home price appreciation from 5-8% for this year, unlike the 20 plus percent we have seen the past year. Another sign of the rebalance. Normal appreciation in a balanced market is 5-8% per year.
Make sure you are using a local REALTOR® experienced in your area as they lead with expertise and follow a strict code of ethics by the National Association of REALTORS®.