The sky is falling! The sky is falling!
If you read and believe the latest news, the sales of houses dropped some 7% in January, nationwide. Interest rate increases are blamed, but there’s more to it than that folks. First of all, the sky is not falling, but inventory is very low. If there is nothing, perception wise, to buy, then buyers tend to hold off until more product becomes available. The interest rate uptick, in my experience, tends to motivate buyers to move into the market, not shy away from it.
Those of you that have a home on the active market that has not sold; take a look at it. Is it priced right? Would a prospective buyer, or buyer agent, see it as a value? If not, you must consider a price reduction to make it appeal to the value driven buyers out there. Be realistic. If it hasn’t had a lot of activity, it is most likely perceived to be over priced. Talk to your Realtor; discuss a plan and commit to it. As painful as it may be to take less, it’s a whole lot better than no offers all.
Interest rates are likely to increase again; and this is not a bad thing. Buyers will accept this and realize sooner, rather than later is a better option for their home buying needs.
And, if you are thinking of selling, NOW is the time to get into the game—before everyone else does this Spring. With low inventory, new listings are the spark that brings the buyers into the market. Price your property right, get it on the market, and get it sold! Call me anytime to discuss your options, goals, plans and questions!