"Surprise The Change Is Here!, Buyers Market?"

Posted by Larry DeBerry on Monday, July 18th, 2022 at 12:22pm.

 

As I told people in May the market was changing. So what do I see right now in July? Much more inventory has come on the market in our area over the past two months and that is giving buyers a lot of choices. When buyer's have a lot of choices that means offers for homes will also change. Why? When sellers have more homes to compete with then to get their homes sold they will need to be more willing to look at offers that are not like those that came in two months ago. In fact, those offers have basically come to a halt. We might see a few offers come in slightly above list but most are now coming in at or below list price. Buyers are being told by their Realtors that they are not facing the kind of competition on each home as they were before, which is true. Showings per home have declined significantly. In Collin County alone the showings went from approximately 25 showing per listing down to 12 or less. 

Sellers will need to adapt to this market because it has changed. You will most likely see fewer offers and those offers will not generate what offers generated two months ago. So what is the good point for sellers? Once a seller sells their home, they will be able to take advantage of this market when they go to purchase a home. They won't have to worry so much about the shortage of homes as it was just two short months ago. This was a big concern back then and the question was "where do I find a home once I sell?" This is not the case today. One other thing that is affecting this new market is interest rates. As interest rates increase they have a tendency to reduce the amount of buyers available to potential sellers. Again, increased inventory, less buyer demand, sellers will need to set their prices to meet this new market.

I have gone through this type of market change before, however not to the extent of how much home prices escalated up, but I have been through sellers markets that have turned into buyers markets. The strategy has to change to adapt to the "new normal" and that is what The DeBerry Team of KW can assist home owners and home buyers understand. For those who need our assistance, please call us at 214-676-8040. We are here to help. 

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