(Pictured above: Gull Lake Living | Click Here to view Gull Lake Waterfront Property for sale)
Moving Through Familiar Cycles
You can say it isn't so, but we're sure you're seeing it too. Trees are quite sneakily starting to shed their leaves, the temperatures hem and haw between hot and cool, and the sun is starting to hide behind the horizon longer and longer.
While we move through this transition from summer to fall, from break to routine, our market also makes a familiar march into cooler times. As homeowners and buyers shift their focus, so too does their real estate activity shift from busy to steady. The hot flurry of activity shifts to a cooler pause, seemingly waiting for everyone to adjust as new listings begin to take the anticipated trend downward on our annual graph.
For those looking to move and sell a home at a top price this year, it's a healthy time to list a home. Average sales prices saw a peak in June but continue to hold their own at the top with trends still UP year over year. And as September creeps by, there will inevitably be less and less competition on the market.
Finding Comfort in Change as We Look Ahead to Rates
There is comfort in this familiar cycle as we look to the coming months of change and new starts. Mortgage interest rates have been on the decline since mid-July and, while differing opinions on future rates leaves anyone guessing, these rates are holding steady in the mid sixes and are not expected to go up for the rest of year.
Changes in the Overall Industry
As we embrace the cycles of familiar change in the market patters, we also embrace change in the industry as a whole. If you're not changing, you're not growing and real estate has grown tremendously over the past few years. 2024 is capping off the boldest of headlines with news of lawsuits, commissions, and misinformation. Ultimately, our industry is navigating changes in how we handle commissions and how we communicate that to our clients. As with any shift in a large scale professional industry, it's more complicated than a headline.
What is not complicated though is that our job as professionals is to continue the conversations and take care of our clients with the highest ethical standards in business practices as we always have.
This is simply a transformative point in real estate history necessary to meet new but familiar demands of the real estate industry.
As these headlines can be complicated and misleading, please do not hesitate to reach out to any Team Clancy member with your questions! We have 35+ years experience in LOCAL real estate and are always happy to help!
Buying a Home in a Traditional Market
The lack of competition on both sides of the for sale sign offers a slight relief for buyers, creating a little more wiggle room to shop. Although finding a home that fits your needs and budget can still be a challenge (some price points and ready-to-move-into homes are moving quickly) higher interest rates are keeping some home buyers browsing online making the competition a little lighter. With the right real estate team behind you, you can find value in our current homes for sale.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. The market may be shifting to a more traditional style but you still have to be prepared. Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your home/property search. In a normal market, you leave room for negotiation, your initial offer is often at the bottom of that range. However, in a seller's market, one can’t expect to go about it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at that property. In a seller's market, we tell our clients to be prepared NOT to get a 2nd opportunity to make an offer or negotiate. Make certain your offer is a strong contender, free of unnecessary contingencies as well as risk & uncertainties that will make the sellers uncomfortable. MAKE YOUR OFFER EASY TO SAY YES TO!
Pre-Approval
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan BEFORE beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Contingencies
Most offers have 3 contingencies: loan approval, appraisal acceptance and satisfactory inspection results. These contingencies, if not fulfilled, allow a buyer to terminate a contract to purchase and retain all of their deposit money. There’s nothing worse for a seller than having their property tied up for a long period only to have things fall apart. Not having additional or high risk contingencies, minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is NOT contingent on selling your current home. With buyer competition strong and multiple offer situations prevalent, sellers will likely choose to pass on your offer (even if it is higher than the others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.
While today's market favors sellers, NOW is still a great time to buy! Real Estate is still a good investment and fixes your shelter costs while rental rates go up.
