What a Shifting Market Could Mean for Buyers, Sellers, Homeowners, and Renters!
by Erin Salem
on Wednesday, October 24th, 2018 at 2:14pm.
You've heard it. "It's a sellers' market." Homeowners everywhere across the country have been taking advantage of home values climbing to almost 9% above asking price in some markets. (And rightly so.) But for months, Round Table Realty broker Howard Flaschen has been saying the market could begin to shift.
Howard doesn't mean that a repeat of 2007/2008 is headed our way, with home values plummeting and millions having to foreclose; not even close. But according to Inman reporter Lew Sichelman, the number of homes selling above asking price is diminishing with more and more actually selling below asking price.
This doesn't mean anything is wrong, necessarily. Market prices have been running way ahead of earnings for several years, and it eventually has to even out. If we do see a shift, it will be an incremental move back to center.
So what does this mean for you?
If you're a home owner, you're in a fantastic position. Your home has gained equity and that means your investment is making you money! The equity will likely level out by 2021 according to Sichelman, but it will steadily and slowly increase until then.
If you're a renter, don't be surprised if your landlord decides to sell the home you're renting. If they're going to do it, now's the time. But because the market is doing well, you shouldn't have trouble finding new investors listing their latest rental properties for similar or even lower prices. As renting becomes more popular in the United States, investors are stepping up!
If you're a seller, find a Realtor you can trust! Pricing your home correctly in a market that might be shifting is absolutely imperative to sell it. You can no longer expect to get offers above your asking price, and your agent shouldn't risk listing it high and then slowly reducing the cost. It sends red flags to buyers and wastes your time.
If you're a buyer, do your homework with your Realtor. Get a pre-approval letter from your Realtor's preferred lender and be prepared to make fair offers. Now is not the time to lowball. Houses on today's market are often in multiple-offer situations, and offending them with a low offer is certain to put your offer at the bottom of the stack.
As always, when the market does show signs of shifting, people get worried. But fear not! If we do experience shifting in 2019, we will be prepared. Round Table Agents are constantly being educated about market trends and how to best serve their clients. If you're making a Real Estate change in the next 6 months, be sure your Realtor can explain every step of their process and reasoning to you so that you don't miss any opportunities!