Uh Oh! Did I overpay for my home?

$78 Million Closed and in Title YTD

I would imagine most people have heard we're in a market "shift" right now. But what does that term really mean? Does it mean you overpaid for your home earlier in the year? Does it mean prices are crashing? I'll share the stats first, then explain what we're seeing on our listings.

Sean Elliott, one of our top agents and also our "market trends guy" provided the following statistic. These are for all of Collin County, single family homes, all price points.

Active Homes - 2,038 - Up from 661 in early April (partly seasonal but still a large jump)
Homes Pending Past 7 Days - 111 - Down from 171 in early April
Number of Price Drops Past 7 Days - 282 - Up from 54 in early April
Average Days on Market - 18 - Up from 9 in early April
Number of Terminated Deals Past 7 Days - 57 - Up from 22 in early April
Average Price of Sold Homes - $674,000 - Up from $621,000 in early April

I highlighted the last statistic because it's totally opposite what one would expect considering all of the other stats before it. Prices are still increasing, just like they have been for months.

I've shared a lot of crazy stories about 40 or 50 offers on the more moderately priced homes (not the luxury homes). We're certainly not seeing that anymore, but it doesn't mean the market has shut down. In fact, we're still getting good, solid offers on our listings but they're pretty much falling in line with were we thought they'd sell. There are fewer surprises of homes selling for 10% over the listing price, or more. So for us, this is business as usual

The reason we're not seeing more homes coming onto the market (which helps drive the home sale prices down) is simply because the homeowners who want to take advantage of these historically high prices realize what they'll have to pay for another home. It doesn't make sense, so they just stay put.

Did You Overpay For the Home You Bought This Year?

Tell me how long you plan to stay in your home and I'll tell you whether you "overpaid"

The market will catch up and pass what you paid for your home in time even if you paid substantially over the list price. That's an absolute certainty. Stay in the home for three years and you're going to be fine.

If you paid substantially over the list price and then try to sell it again right away, you might be disappointed. Real estate holdings should be looked at as a long term investiment