One thing we should all be aware of right now is that a lot of home sellers are reevaluating their price.
And one thing you should be monitoring in your own market area is the number of price adjustments that are occurring every 24 hours. Maybe on your hot sheet, your MLS data sheet, it's gonna show that number. Keep it a close eye on that, and then think about it with your own sellers.
Here's something that's interesting:
In the last few weeks we've seen 3.5% of all the sellers in America reduced their price.
Now that doesn't sound like a lot. But remember, we're coming off one of the hottest real estate streaks we've ever seen in our market.
But the market's starting to cool when it comes to pricing and people are starting to adjust to get ahead of the market. Typically we don't see price adjustments begin to happen at this level until July or August.
So why are sellers starting to adjust prices much, much earlier than ever before? It's because they're watching interest rates rise.
And as interest rates rise...
For every 1% interest rates go up, it takes 10% of the buyer pool outta the market.
The buyers that are left have to readjust their budget downward because interest rates are eating up what they would normally spend on the house. They're having to spend it with the bank in order to get that financing.
Savvy sellers are getting ahead of this by pricing their properties super aggressively. And if they miss the mark and just get a few showings and not any offers, they're quickly readjusting their price so they can capture that market.
Here's what you don't want to do:
You don't wanna chase the market down and you want to be way ahead of it. So if you know, you're not gonna sell, get ahead of it by getting that price down and get it in line so that you can get these listings sold.
The market is going to adjust. We're not gonna go negative, highly unlikely, but we are gonna see price moderation. So that means if the market in your area was up 15% this March compared to last March, we may see that moderate all the way down to 4 -5% by the end of the year.
We're starting to see this in many metro markets. Get ahead of it with your own clients. Don't be afraid of these conversations. Point out the statistics, point out what's happening and you're going to be able to help them get moved quickly.
Guys, go out there and crush the market.
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