Our 2020 spring market is already underway, and I thought you'd be interested to hear what we can look forward to over the next few months.
We are starting to see a shift in favor of home buyers; mortgages have stabilized, inventory levels are growing, and home prices are rising at a slower pace. Spring 2020 will be a less competitive market that we've seen over the last few years, and whether you're looking for a home or planning on selling one, here's a few pointers to help you navigate the process. Please feel free to share them with your friends and neighbors:
- The market will be shifting from an extreme seller’s market to a much more balanced market, as increasing spring inventory combined with less demand will result in fewer offers on many properties. Some properties will still sell over the asking price, however many will actually be selling for below the asking price, probably in the 95-98% range.
- The time needed to sell a property will increase to in many neighborhoods as compared to record lows last year of about 7- 9 days from the time the broker enters it in MLS to the date is has an accepted offer.
- Another indication of a shifting market is that you'll see quite a few homes being listed with the expectation of multiple offers but wind up with no offers by the offer deadline after a week of showings. This "window" after the first weekend is the time when seller's will be looking forward to reviewing any reasonable offer that comes in and will be more negotiable than the week before the first weekend of Open Houses.
These key points are all indications of a market correction, which was inevitable. If your actively looking, be ready to make an offer and move forward on a purchase contract very quickly. Have your attorney and a home inspector already chosen, and if you do find yourself in a multiple-offer situation, consider making concessions regarding inspection results and repairs. You could also consider being flexible about the closing timeline which will give you a stronger negotiating position. It's also very important to be financially prepared by having your mortgage pre-approval ready to go, and definitely have any credit issues cleared up and deposit and down payment funds ready when you make an offer.