Long Beach Sellers - How Will Market Changes Impact You?
The volatile real estate market has once again witnessed several changes. Interest rates have risen, the number of buyers has decreased and the number of sellers has increased; all factors combining to result in a slow down of the frenzied pace of home sales.
During the month of July interest rates increased impacting the buying power of many prospective home-buyers. The percentage of first time buyers dropped as it is more difficult to qualify with the stringent guidelines in place. The FHA loan, with its 3.5 percent down-payment, has been the loan most frequently utilized by buyers. Rising interest rates combined with the PMI (Private Mortgage Insurance) has forced many buyers to re-evaluate their financial strategy and opt to save a twenty percent down-payment thus taking them out of the market for now.
An article recently published by Re-Insider, Move Over First Time Homebuyers, addresses the issue of diminishing buyers. The number of first time home buyers is down 11%. Traditionally these buyers represent 40% of closed transactions. Therefore the buying pool is slowly shrinking. The frenzy of multiple offers and bidding wars has slowed.
Sellers, intrigued by tales of bidding wars, have entered the real estate market expecting to command higher prices. A strong indicator of the market is the average number of days homes are on the market before selling. Even in the most desirable locations the number of days on the market has increased. In early spring homes received multiple offers within days of listing. Today the average number of days for Signal Hill homes has increased to 54. During the month of July the average number was 45 days.
Long Beach Sellers - How will market changes impact you?
Sellers need a realistic picture to understand the current market. The market is speaking and another shift is underway. The changes will determine the length of time it takes to sell your property, the type and quality of offers you will receive and the highest dollar net to the seller.
Pricing is a critical component of selling a home. Call me for a home analysis. If you are looking to net the highest dollars in the least amount of time I have creative strategies to help achieve your goals.
Long Beach Sellers let's discuss how the market changes will impact you.