The real estate market took a surprising turn this September as the number of homes sold reached the lowest level since October 2010. This trend reflects a complex combination of economic factors, including rising interest rates, economic uncertainty, and inventory shortages. For both buyers and sellers, this evolving market landscape presents unique challenges—and, with the right guidance, new opportunities. Here’s what both buyers and sellers should consider in this shifting environment.
For Buyers: The Importance of Strategy and Preparation
1. Locking in Financing is Key Interest rates have continued to climb, making affordability a top concern. Rates may change further in the coming months, so buyers should prioritize securing financing sooner rather than later to avoid additional rate hikes. Getting pre-approved can also strengthen their bargaining position, as sellers are likely to view pre-approved buyers as serious and ready to act. By understanding their budget and securing a mortgage rate they’re comfortable with, buyers can have peace of mind in their price range.
2. Know the Power of Negotiation With the market slowing, buyers may find themselves with a bit more leverage, especially for homes that have been on the market longer. Properties are sitting longer in most areas, which means some sellers may be more open to negotiations on price or terms. Additionally, in today’s market, buyers might negotiate for contingencies that protect them, such as inspection contingencies or closing cost assistance.
3. Be Patient but Ready to Move When the Right Home Appears Inventory remains low, which means good properties still move quickly. While patience is valuable, buyers should also be ready to act fast when they find a property that checks their boxes. Staying updated on new listings and even setting up alerts through the MLS or their agent can ensure buyers don’t miss opportunities in this low-inventory market.
For Sellers: Staying Competitive in a Slow Market
1. Pricing Matters More Than Ever In today’s market, overpricing can lead to extended time on the market and ultimately, reduced buyer interest. By starting with a realistic listing price, sellers can ensure they don’t lose crucial time with unnecessary price reductions. Working with a knowledgeable real estate agent can help sellers analyze comparable properties and price competitively.
2. Make Your Home Stand Out With fewer buyers actively looking, sellers need to make their homes as attractive as possible. Simple steps like staging, deep cleaning, and minor upgrades (like fresh paint or updated light fixtures) can make a big difference. For buyers weighing limited options, the homes in the best condition often win out. Sellers should also ensure their online listing includes high-quality photos and virtual tours, given that buyers often narrow down their choices digitally before setting foot in a property.
3. Be Open to Flexible Terms Being open to negotiate or offer creative terms can make a property more appealing in a slower market. This could mean covering a portion of closing costs, offering a credit for repairs, or even entertaining a rent-back option for buyers who may not be able to move in immediately. Flexibility can attract more interest, especially from buyers hesitant to commit in a high-rate environment.
A Balanced Market Ahead?
While September’s sales figures might seem discouraging, they could signal a more balanced market ahead where neither buyers nor sellers dominate. This environment offers an opportunity for buyers and sellers to achieve fair deals with realistic expectations. For buyers, this could mean a shot at securing a home without engaging in bidding wars, while sellers who price appropriately and are open to negotiation will still find ready buyers.
Whether buying or selling, navigating today’s market requires strategy and support. Working with a knowledgeable real estate agent is invaluable in helping to analyze local market trends, interpret data, and make informed decisions. This guidance can mean the difference between a smooth transaction and one marked by missed opportunities or unnecessary stress.