Are You Frustrated With The Current Real Estate Market?

If you’re frustrated with the real estate market as a Buyer because everything is a bidding war and you hate that, you search for homes in your budget then they sell for $100k or $200k more, or you can’t make an offer with conditions on financing or inspection, then we might just see a light at the end of the tunnel. 

Things might be shifting in your favour. 

There are about 85% more homes For Sale then there were on February 1st. 

As more Listings come out it would seem likely that a lot of homes (if underpriced to create a bidding war) might not sell on their scheduled offer night. 

As Buyers have more homes to choose from, history shows they’ll wait until offer night comes and goes. 

And if the home is still for sale the next day they’ll book a time to go see it with their Realtor. 

That way, not only can they hope to avoid multiple offers, but can also likely include Conditions on Inspection & Finance in their offer. 

Ironically this week I posted a video called: “What If Listings Were [Actually] Priced At Fair Market Value?”

With this increase in SUPPLY I have a feeling we will start seeing homes listed at fair market value, and not underpriced with Sellers holding off until an offer date. 

I’ve always said you can’t just underprice a home and automatically get multiple offers. 

The media makes it look and sound easy. 

But when I meet with Sellers who ask me about it, I always advise that strategy works well IF (and only if) the market timing is right, the demand is right, and the Agent knows how to aggressively market the home and work hard behind the scenes, to generate massive interest. 

But, as more Sellers are deciding to list their properties, thereby creating more supply, the underprice strategy might soon stop. 

Don’t get me wrong.  Demand is still far more than supply. 

Which means prices will stay strong and not necessarily go down. 

That will only happen when supply is more than demand. 

But with supply increasing it is working in the direction of a more BALANCED market. 

Which means underpricing and holding offer nights to create multiple offer bidding wars might soon stop.

I wouldn’t consider this an official Market update as no update can define the future before it happens. 

It can only report past results and stats.

But based on recent stats I’m predicting that in coming weeks we will see underpricing strategies become more rare.

As a PS (if you will), if demand still stays much higher than demand, then make no mistake. 

Homes won’t sit on the market forever. You can’t just decide to go see it next week and think about it for a long time. 

You’ll still have to see it as soon as it hits the market because you want to get there and make an offer (if you like it) before someone else does. 

But, if it’s priced at fair market value, so as to not holdback for offer night, and you get there quick and make an offer, your Buyer’s Agent can actually negotiate some terms of your offer, along with the benefits of Conditions to protect you AND shopping for a home within your budget.

If you want to know more about market trends or pricing strategies I’m always happy to chat.