Posted by Mark Gellman on Friday, November 5, 2021 at 5:29 PM By Mark Gellman / November 5, 2021 Comment
Hello, it's Mark Gellman, St. Louis, Missouri, EXP Realty. What is happening in the real estate market, now that we are entering the winter market
We are still seeing a strong seller's market and weakness in inventory, for those homes that are prepared for sale.
You absolutely cannot put your home on the market, not prepared for sale and expect to get a premium.
We are seeing premiums every day for those homes that are "buttoned up", prepared for sale, and priced right.
The biggest reason that sellers are not getting great offers, multiple contracts is they are not pricing the home right to begin with.
The risk of overpricing homes = sit for a few weeks and the market begins to ask what is wrong with that home? Although, there's nothing wrong with that home, the overpricing to begin with is diluting the value of that home
From a buyer perspective, we are seeing buyers rush to tie up many homes, and we're seeing a trend that we have not seen this year, which is more mutual releases (meaning terminated contracts) than we've seen in the past.
Buyers feel like they're under pressure to make a decision to tie a home up, they “catch their breath” and realize the home is not right for them.
If you're a seller, be prepared, that although that first offer looks great, it may not end up closing. The right agent is going to mitigate as much they can, the risk of the property not closing.
If you're a buyer, the strategy right now is catch your breath, make a good decision, because if you tie that home up in order to terminate, you're going to most likely have to do an inspection, start spending money, and we want to respect your dollars.
As such, you may want to take your time. However, the challenge in many cases is you will not be able to take time and you're going to have to rush. If you feel like this is the right home, move fast and buy the home.
Over the next few months, we expect to see the continued weakness in inventory. There's nothing to lead us to believe that inventory levels will rise.
We're still at under 1 month of inventory in the majority of markets and price points that we serve.
Spring market looking forward, we expect to see a consistent spring market, but we don't expect to see a significant inventory increase.
The challenge is, many sellers have unbelievable homes to sell, but they are not putting their homes on the market, as they have nowhere to go.
Unfortunately, it's a tricky market for those sellers that want to buy before sell or just don't have anywhere to move when they do sell.
If you have any questions about buying, selling, investing, or about the current market, don't hesitate to reach out to us.
If you're a seller, put your home on the market. There is no need to take your home off the market for the fall holiday winter season - there are still serious buyers and heavy buyer demand.
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