A Mid September market update.
We generally see a bump in the sales activity over the next 6-8 weeks and this year is looking about the same as the trend – this is good news for sellers.
Depending on what type of real estate you are selling, it may be time to take an honest look at what your listing price is. Selling in this market is not about…” listing it high so we can negotiate” but more, “listing it at the real market value and holding firm”.
Since I have been tracking real estate sales, homes sell between 96%-98% of the asking price. This is always a surprise and I would have thought it would be a bigger spread but those are the real numbers. So, price your home at 3-4% over your bottom line and attract as many prospects as possible.
In general, here what’s happening for:
Single Family Homes – still selling but the $600,000 – $850,000 market has slowed down significantly. Investors have pulled back and first time buyers are VERY cautious. I am seeing some amazing deals out there, homes with suites under $800,000 and 3 bedroom ranchers at $600,000 – prices we haven’t seen since before COVID
Condos & Townhomes – High end are suffering with a down-turn in sales while mid-priced upscale units are holding their own. They are still down in sales price but they are getting activity.
Land – Very slow as builders and developers are pulling back. The cost of building has increased dramatically and the uncertainty in the world is making those considering buying land and building pulling back. The down-turn in sales has developers waiting until the market picks up. Sound familiar? Yes, in 2008 we saw the exact same thing happen and 3 years later we had a shortage and prices started climbing.
Mobile homes – Some activity just due to the price point as this may be one of the better options for a low income senior. I have seen modular homes that were selling in the $575,000 – $625,000 range now selling for $100,000 less. There are nice options out there in the $300,000 – $350,000 range and very nice options in the $450,000 – $535,000 range.
Luxury Homes – Ample buyers but the sales prices are down, sometimes as much as 30%. I do find that these buyers are not as concerned about the market conditions as they are often cash buyers. The sellers are taking a hit on the price but that is what it takes to move these homes.
Commercial & Development – Way down with limited interest in all price points. Again, the uncertainty in the market really drives this buyer and right now they are holding back. Lease rates drive the price and with an abundance of space available, this all equates to a lower value.
On the positive side – I am seeing more activity in the office, getting more calls and the the industry watchdogs are telling us that we are seeing gentle growth in the sales.
If you are considering buying…. now is the time. I feel like we have a 6 month – 12 month window to take advantage of the lower sale prices and then, well – who knows. Tarrifs, world activity, new governments… it all paints an unknown picture and all I have is the past trends.
Want to discuss your specific needs? Reach out for a call, email or meet for a coffee and we can get into specifics
