Everyone seems to be creating a buzz around the possible market shift in real estate. Article after article about the coming change in the market forewarns sellers and buyers of possible good fortune or impending doom. But what does this really mean for the average consumer? Would we recognize a shift when it begins, and what signs should we all expect? Below is a list of a few certainties that may help us decipher the next market shift.
A change in listings will be the first tell-tale sign. The number of listings on the market in any given area will gradually grow as the number of sales begins to decline. This domino effect will create lower listing prices. For this reason, keeping close tabs on the current market is a must.
At the beginning of a market shift, you may first see a split by price point. Typically, entry level homes will continue to stay in the seller’s market while higher end or luxury homes begin to shift.
As the market shifts, wage growth becomes almost stagnant, leaving buyers struggling to afford the higher priced listings. Lenders are then forced to become more aggressive with creative financing to keep buyers in the game.
What Can You Do?
For sellers, when the market shifts out of a seller’s market into a buyer’s market, adjustments will need to be made. There are two easy steps…..
Make sure your listing price is comparable and competitive. A market shift tends to amplify an overpriced listing. Let your experienced agent guide you. Most agents have successfully maneuvered through previous market shifts and will be able to help you do the same. You’ll want to make only one price adjustment, so you want to get it right the first time.
Make sure your property is in tip-top shape! Buyers will be picky like never before. Be proactive to eliminate concerns. Have your home show ready at all times. You’ll need to be on your toes to stay ahead of the competition.
If and when the market shift happens, it could bring with it a large number of expired or cancelled listings. If you find yourself in this position and you need a fresh approach to listing your property, please reach out to us. As always, if you will be buying or selling in the near future we would be happy to meet with you for a free consultation. Contact the Scherer Team at 888-300-4431.