Remember bidding wars?! Yeah, me too. That was so ‘early 2022’.
But what’s going on, now? There doesn’t seem to be much movement… or many new places being listed. It does feel like that, doesn’t it?! Well, you aren’t the only one who might think so.
Traditionally, the last couple of weeks of August are a slower time for people buying and selling properties, anyway. Most people (myself not included) do tend to take time off before the hustle of school, spots and activities starts ramping back up. Makes sense.
However, this year, we’re starting to see something else that might explain another component of the slowdown: the fact that even sellers are now staying on the sidelines, too. So it’s become a staring contest between buyers who are waiting for prices to hit their lowest and sellers waiting for the most advantageous time to list to get the most traffic, interest and highest bid(s).
Advice to Sellers.
Whether away vacationing, or in an attempt to not have their newly listed place sit on the market for long periods of time, sellers are sitting back at the moment and many are planning on having their listing go live early-to-mid September to coincide when the most people have the bandwidth available to consider such a huge endeavor.
While their rationale may be understandable, it’s also exactly the same thing as what most others are going to do, also. Ironically, in an attempt to avoid their properties sitting unsold and getting lost among all the listings, they are likely going to cause exactly that by going live the very moment everyone else does, too.
If you are planning on listing, maybe you ought to consider doing so before the rush of properties comes to market. Just a thought. Think what others are doing and do the opposite.
Advice To Buyers.
At this time, buyers might be forgiven for thinking they can low-ball on any offer they care to submit. While there’s certainly evidence that sellers are demonstrating flexibility accepting conditional offers below asking, there is also resolve in not ‘giving properties away’ for much below asking (most properties are appropriately priced at the moment). All this is to say that please don’t be tempted to submit an insulting offer – you’re just wasting everyone’s time. Moreover, even with more inventory coming to market and with further increases in interest rates, the monthly affordability of properties really hasn’t changed appreciably. There’s very little to be gained by procrastinating.
Ain’t that the truth.
What Does This Mean?
It means that as long as you plan to stay in your new place for at least the next 3-5 years, there is very little point in delaying a purchase once you’ve found the right property; there is such a high likelihood that prices will have appreciated by that time, once the market returns to a more balanced state. Moreover, don’t forget that the underlying fundamental of a growing shortage of properties can only force prices upwards. This shortage hasn’t been addressed and continues to be a real strategic issue, even if it’s fallen out of the news’ headlines; it’ll resurface in no time.
… and then you’ll be kicking yourself for not buying in late 2022 when prices were so ‘cheap’.