With rising interest rates confronting a market that had multiple offers on nearly every property, the market can be tough to navigate especially given how quickly it changes these days.
Trying to navigate this market can be even more confusing as we all try to complete the picture with existing inventory and pricing. Some sellers are responding to the market and are pricing very aggressively. Others are referencing pricing from 3-6 months ago. That's a rough spot to be in when increasing interest rates can reduce your purchasing power by 20%!!
The moral of the story is two fold. Sellers, take a look at the market and to the extent that you can, try to view your property like a buyer would. Do you have an extra large lot? Do you have a view? Is your property turn key?
Buyers, what do the comps look like? How many other properties are similar and are currently available?
Despite what happens in real estate, it's still a unique market in that all it takes is one. It's not a very liquid market and it only requires one seller and one buyer to have a transaction. And keep in mind, just because we have some inventory and higher interest rates, doesn't mean that the buyers from 6 months ago who were competing with 10 other offers are gone. Everyone is busy trying to navigate this market. When a "deal" shows up, there are multiple offers. If your pricing is based on the market from 6 months ago, it will be absolute crickets and your offers might not be close to list. In other instances, if you're the only game in town, you might be safe.
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