It’s August and that always feels like a major transition month to me.  We are enjoying the last lazy days of summer and anticipating the major RE-SET that September brings.  September almost feels like the beginning of a new year to me; school starts again, colleges are back in session, office retreats commence and summer schedules are gone.  So, it’s a GREAT time to think about organizing our lives to have a better Fall launch.  So, to help us all get a jump on this, here are some 2 helpful organizational hacks:

MARKET UPDATE

by Carrie Palmore

Contrary to what you might be hearing in the media, the sky is NOT falling!

Let’s take a look at what’s happening in the market.

Is the real estate market changing? YES!

Is the real estate market ALWAYS changing? YES!

While it’s true that interest rates are going up, that’s nothing new. Interest rates go up and down literally several times a day. However, I think we can all agree they, like everything else, are rising quickly. That’s the part that has caught Buyers unaware. They knew they would go up, but the speed at which they have risen has priced some Buyers out of their price range and now they have to regroup.

This in turn, has “softened” the market. What does that mean?

It means that Sellers are no longer receiving multiple offers in two days for thousands of dollars over asking. It means they are on the market for a longer period of time, sometimes weeks <gasp!> and receive an offer at, or even slightly below, list price. It means that Buyers are no longer waiving inspections and appraisals, bringing in money to cover the appraisal gap, and offering the sun, moon and stars to the Sellers.

But that doesn’t mean the market is crashing.

There is a huge difference between the crash of 2008 and today. Lending practices are much more strict. Buyers have put a significant amount of money down on the house. Inventory remains very low.

Consider this. A “normal” market - meaning there are enough houses to choose from and they are sold in a reasonable time frame – is 6 months of inventory. The latest market report shows we are at 1.4 months of inventory! That’s 42 days! If nothing new were added to the market, in 42 days, we would have no houses to sell. (For comparison, in 2009, we had 18 months). There is still a pent-up demand for houses and not enough inventory to supply them.

While the interest rate seems to be skyrocketing, consider this. The AVERAGE interest rate since 1971 is 7.77%. That’s right, we are not even to the AVERAGE interest rate.

Does it mean everyone is making adjustments? YES!

One of the most important thing we, as a Realtor® can do for our client is to set proper expectations. Sometimes, it’s not what you want to hear, but understanding what is happening can help the client through the transaction. So maybe our Seller’s home will be listed longer and our Buyers will have to reset their budgets on what they can afford. But we’ll get through this, and working with a professional who understands the market and can guide you through it will make all the difference in the world. Give us a call. We are here to help.