Plus, why a balanced market is best for sellers and buyers:
“I felt a great disturbance in the Force.”- Obi-Wan
For the first half of 2021, the real estate market in the Triad has been a bit crazy! However, lately, there has been a noticeable “disturbance in the Force” as things cool down. Here are three signs of this:
- This no longer is the “ticket blaster” game at Chuck E Cheese. Buyers aren’t scooping up houses sight unseen just because one came available. They are actually seeing the house before purchasing, evaluating their options, looking at comparable sales, and asking sellers to be fair with respect to repairs.
- Funds are no longer “monopoly money” but real dollars that buyers worked hard to make and save. Yes, rates are still low and will continue to stay that way. But there are signs that the government wants the economy to recover and grow based on a solid foundation, not stimulus checks and handouts. Forbearance opportunities are becoming fewer, eviction moratoriums have tighter restrictions, and some states are setting limits on unemployment benefits. Buyers are evaluating their purchases more carefully.
- New listings in the Triad MLS are at a 10-year high. Months supply of inventory is now at 1.3, up from a low of 24 days. Yikes! New construction pricing is stabilizing, however, development costs and supply chain issues are still having an effect on pricing.
Why a balanced market is best for buyers and sellers:
- Winston-Salem, the City of Arts and Innovation, seeks to recruit professionals! With limited available homes, qualified professionals and their families will go elsewhere.
- Contract to closing — confirmed? I don’t want to say that sellers are being greedy, but some are. Their listing prices are high, and they are refusing to do any repairs after receiving a contract that offers significant due diligence money. As a seller, you don’t want to see “back on the market” next to your listing. Is there a stigma attached? Maybe, although as listing agents we try to refute that argument! What should you take away from this? The first offer is usually your best offer — so make it work.
- Buyers and sellers are both needed for a “market.” Buyers want to buy and sellers want to sell. If buyers don’t feel good about their opportunities, they will not sell. As we have seen with COVID, if there are buyers but no sellers, there really is no market.
Bottom line: yeah, it is a sell-high/buy-high (or rent-high) market. But if you want or need to sell, now is still the time. Prices have most likely stabilized, and there is a better chance that your buyer in August 2021 is qualified and committed, which is ultimately better for you.
Sell high, buy high, or rent high in 2021. Don’t let it hamper you from making the move that is best for your family!
Cheers to the end of Summer!
Tori