By Kathy McSherry | Ask Kathy
In the Spring of 2018, we had more of a seller’s market where multiple offers on the same property were being seen and days on the market were short. Prices were up and sellers were getting top dollar for their homes; that is if it was priced right and showed well. A shift was being noticed around late June of 2018, or early July 2018. At first it felt like a pause in the market. Again, this is depending on location and price point. But overall, homes were selling fast with limited inventory.
In Mission Valley, I noticed a slow down about end June 2018. The listings that I would take in July through September eventually ended up lowering their prices by about $30,000. This is what the market decided. As valuable as a good agent can be, no one can predict a turn or shift in the market that quickly. And, ultimately it is what a willing, able, and qualified buyer agrees to pay for someone’s home that determines the selling price.
An interesting lesson on listing within a five-month timeframe taught me how timing can be crucial. The problem is no one has a crystal ball, and those in the active real estate market feel the shift literally as it’s happening or within weeks.
I watched as other listings in Mission Valley started out of the gate too high. I call this real estate suicide. Setting a price too high can ultimately alienate your true buyer.
The risk then becomes that your property will look stale and people begin to question what is wrong with it, and now consider offering a much lower price. Remember, the goal is to achieve the highest price in the shortest amount of time. Also, with the shift in pricing, typically comes longer days on the market regarding selling your home.
However, the long-term purchase of real estate is known to reap great benefits and is sound for long term investing. As interest rates rise, buyers get skittish. We all knew that 3 percent interest rates would not last forever. As interest rates hover in the high fours, I am reminded of when my parents bought a home in the mid 1970’s at over 11 percent, and my first home in Las Vegas in 2000 at 6.5 percent.
Overall, I believe in real estate and its ultimate value. I think if you can’t afford a certain home, then try for a slightly smaller home or in a different location, so that you can get into the game of real estate and land in home ownership. Of course, this depends on one’s financials and personal circumstances. But overall, the long-term benefits and the many different financial possibilities that are associated with home ownership make it the ultimate American Dream! Here’s to a great 2019 in real estate.
—Kathy McSherry is a Realtor at Coldwell Banker Residential Brokerage. Email your questions to Kathy@kathymcsherry.com, or call 702-328-9905.