The slow move out of the seller’s market isn’t all doom and gloom.
People are saying that rising inventory is doom and gloom for the real estate market. Around 19% more homes have been put on the market in 2021 compared to 2020, and we’re just at the start of June. If you’re thinking values are going to go down, you’re mistaken. We have to look at two more data points to make sense of all this:
1. Pending sales. Whether you look three weeks ago or today, pending sales are up almost 40%. Supply continues to go up, but the problem is that demand is still outpacing the market.
2. Closed sales. Closed sales are up almost 60%. These could be anywhere from 30 days ago to 45 days ago depending on whether it’s a cash or conventional sale.
Here’s something we saw this month that’s a new factor in the market: buyer fatigue. Until now, when we listed a property on Thursday, by Sunday we had 10 to 30 offers. Now we’re seeing buyer fatigue nationwide. What do I mean by that?
When we listed on a Friday, by Sunday we had 25 showings and only one offer. I was a bit shocked. We let it go and had 30 more showings. We had one offer by Saturday of the following week; after we had close to 100 showings, we had two more offers. It took a little bit longer, but our value got higher.
The interesting thing was that both buyer agents said their clients were tired of getting beat out so they did not even look at this property until after the first weekend on the market. As a seller, you need to know about buyer fatigue. You need to be patient and understand that real estate is hyperlocal.
If you have any questions, please reach out to me. I’d love to help you. Have a great day.