Buyer activity has been tapering off in recent months. We are no longer in quite the real estate frenzy of late 2020 and early 2021. What was once one of the strongest seller’s markets we’ve ever seen is gradually coming back down to earth.
This is natural, and it is not surprising at all. The real estate market has a tendency to self-correct over time. The market is still great for both buyers and sellers, but we’re in a bit of a market “pause” as summer nears its end in the tri-state area.
Why Was the Seller’s Market So Hot?
The crazy seller’s market has been the result of a number of factors. We had brutally low housing inventory. At the same time, we had very high buyer demand. Covid made a lot of people rethink their living situations while mortgage rates were at historic lows. Buyers retained plenty of buying power, even as home prices skyrocketed. Now, we’re seeing things level out some because inventory is increasing and mortgage rates are inching upward.
More Inventory = Less Buyer Desperation
Buyers simply have more choices, so the market is less competitive. They don’t always have to be ultra-aggressive with offers any more. We are even starting to see more price reductions and a slight increase in days on the market. The threat of inflation could start inching up mortgage rates and that may spark a decrease in demand. As it is now, it’s still an excellent time to sell your house. You just have to set the right expectations and have a better home selling plan.
You can’t simply put your house for sale on the market and expect it to get as much attention from buyers as it did six months ago. You might not get multiple offers. You may not get initial offers above asking. Use this market pause as time to prepare your plan and get your listing ready for maximum resale value. Pricing a home correctly is still key!
Why Sellers Need to Plan and Prepare
Unfortunately, many sellers rushed to get their properties on the market during the buying frenzy. The homes weren’t quite ready to show and, in some cases, needed a lot of work. Some got away with it because of the competitive market conditions and desperate buyers. Many were able to sell quickly, but did they really get the best return on their investment? Sellers with the nicest homes that were well-prepared with staging and marketing will always see the best prices—no matter how hot the market is. Those who had a plan and took the proper steps saw even bigger profits than those who rushed to sell.
Planning and preparation are going to be even more important for home sellers moving forward. Buyers are able to be more selective. The desperation of such a fast-moving market is dissipating, and now sellers will have to work a little harder to get the best selling prices.
If you are thinking about selling your house—or if your home is already on the market and not getting the offers you hoped—use this market pause to be productive. Here are a few tips to consider:
Keep Up with Maintenance—Keep your house clean, make repairs and take care of general maintenance so it doesn’t have issues that could turn away potential buyers.
Make Upgrades—Perhaps there are some strategic upgrades (energy-efficient appliances, new paint, new flooring or fixtures, etc.) you can make to increase the resale value of your property.
Stage It—Work with a professional stager who can help you properly stage each room of your home to improve its buyer appeal.
Hire a Real Estate Agent—Now is not the time to sell a house on your own. An experienced real estate agent will help you get the most out of your home sale through staging, marketing and expert negotiation.
Keep it Clean—As your home is on the market, make sure to keep it clean and organized. You have to be ready for showings at all times. You want it to look as nice in person as it does in your listing photos and videos.
Whether you want to wait out the market pause or get your house up for sale as soon as possible, you have to take the necessary steps to prepare it. Buyers are no longer desperate and you lose value when you don’t plan and prepare your home sale.
If you are selling your home in the Southeastern Pennsylvania or Northern Delaware area, contact The Cyr Team today for a no-obligation real estate listing consultation. Let us help you get better prepared for the market ahead.