How’s the market?
I get asked this question a LOT. The short answer, it’s great. It’s always great…for someone.
Is it a Seller’s Market?
Currently, it’s a Seller’s market and homes are going into contract fast, usually with cash or conventional loan Buyers. BUT, that doesn’t make it a great market for everyone. The market is leaving a lot of Buyers on the sidelines. The majority of these Buyers are FHA or VA loan Buyers. With historically low inventory ie homes available for sale, most homes are going into contract within a couple days and well over list price with limited contingencies in place. Some speculate that this means we’re in a housing bubble and that Buyers should wait until the burst, however those in the know will tell you this market is completely different than, say, 2006.
In my opinion, the biggest reason the market is the way it is right now is low inventory. Add to that, Builders are WAY behind due to overpromising what they could build in 2021. Builders have also had supply chain and staffing issues.
What’s a home Buyer to do?
Many homes going in contract so quickly end up coming back on the market after a few days. This is due to surprising inspection results, cold feet, or lending issues. I’ve found in response Sellers are asking for higher Earnest Money Deposits, home inspection waivers, higher appraisal gap coverage, and requesting Buyer loans to be desk-top underwritten at time of offer. All of this takes a bit of risk away from the Seller, but leaves Buyers with the burden of coming up with more cash to close. Luckily, though interest rates are creeping up, they are still very, very low which is great for Buyers as they can afford more house, and Sellers because they have a larger Buyer pool.
Sellers, don’t despair!
If you’re thinking of selling but worried about where to go next, take solace in the fact that you’ll likely make a pretty penny on your house and you can use that money towards your next home. Additionally, many Buyers are allowing the Seller to stay put for up to 2 months so the Seller has a little time to find the next place to lay their head at night. If you need help figuring out what to do next, give me call. I’m happy to meet with you to go over your options.