Markets stay in motion until something acts upon them – is that “something” happening now? We are seeing fewer homes with multiple offers and the marketing time is increasing.
Marketplaces are naturally unpredictable. If you could always guess which way a market was going to turn, getting rich would be easy. The accelerated Market of this past year may have created the illusion that prices will continue to rise. Some people are expecting prices to go up another 30%, and then they will be ready to sell. They may be greatly disappointed by the changes that are likely in the Market. There is always a limit.
Earlier, Buyers were the first to know that the market had changed. They began to make higher offers, often up bidding the listing price. Agents were the last to know that the market had changed when their listing prices became inaccurate. Now the agents are the first to realize that Buyers are tiring of the chase for ever higher prices. Buyers are also beginning to back away from multiple offers. For homes in the $2.5 M to $20 M range, sales are slowing down. As much as a 10 percent pull back could happen as things“flatten.” Some sales are closing now at peaks that may not be equaled by new sales that are now going into escrow.
Montecito Market Report
There are still a lot of sellers who need to be convinced that the market has shifted. They will overprice their homes, which will make them harder to sell and take much longer. Should you consider the real possibility that the Market is about to change? Yes, you should!
If you are thinking of selling within the next two years, right now may be the best time to get the process started. It takes more than just a moment fora house to sell. Selling has a 1 to 3 month preparation process, followed by the marketing and sale efforts – think 1-3 months, all capped off with an escrow period. That process will never be easier and take less effort than it does right now. If you wait for a “normal” market to sell, plan on more time, more work, and possibly less profit.
Changing jobs, changes in the economy, health issues; all of these can force a move. Having to sell is a lot different than deciding to sell. Better to choose your destiny rather than having circumstances force it upon you. Proactive people do better in the Market. If that is how you see yourself regarding your home sale, I would like to meet you. Let’s plan your home sale together for the best possible outcome.
Right now, you can be sure of a great outcome. A year from now is less certain. Two years from now no one knows. The coming impacts to real estate could be large enough to make you wish you had sold your home in 2021.
Client Talk…
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