I listened to an interesting webinar today which in many ways confirmed what I am seeing in my real estate market. Our prices have certainly increased–12% this year by some number crunchers. The prices have flattened or remain steady but we are not seeing any sign of dropping. In the past when prices have gotten to a point buyers have just pulled away. Something that I haven’t seen in the 20 something years I have been a broker is that the buyers are still competing with multiple
offers but…. the offers are lower than listing price. I like it—always want my sellers to get the most they can from the market but if buyers back off totally there is nothing to negotiate with– the offers I have seen are going into escrow between 3-5% of list price. In the last couple of years sellers have listed slightly above the comparables so what appears to be happening is the market price is holding. Sellers and buyers are coming together over Sect 1 work, repairs, closing cost credits. VA and FHA offers have an atmosphere to get attention. All in all I say this is good– buyers who have given up may very well be able to come back into the market while interest rates are still low. Sellers will still be able to sell and move up because contingent offers will be more the norm. The increase in value has been very strong over the last few years. Some might suggest the market is balancing…I would agree.