If you're considering selling your home, you may be aware of the current slowdown in the property market. The peak frenzy the market saw over the previous two years has somewhat calmed down, but it is still a sellers' market. The good news is that you haven't missed your chance to sell your home and move on because there are still motivated buyers out there. However, you must appropriately price your home for the market today. This is why.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

It is true that buyer demand has decreased over the past few months as rising mortgage rates have increased the cost of home ownership. As a result, there are fewer bidding wars and fewer buyers competing (see illustration below):

But keep in mind that this is in comparison to the overheated market we witnessed over the previous two years. The most recent NAR Confidence Index indicates that:

“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”

Even if the market is moving at a slower speed now than it was even a month ago, serious buyers are still actively searching for houses to buy and are doing so at fair prices. In fact, the Confidence Index states that the typical home sells in only 57-60 days.

If you want to sell your home, make sure you and your agent determine the right price for it in the current property market. It's critical to recognize that the current market is different from the one from the previous year as buyer demand drops. Even today's market is not what it was a few months ago. Still, it is a sellers' market.

If you're prepared to sell your home, consult a real estate expert for help. In some circumstances, you'll need to modify your expectations in order to accommodate the current state of the market. Selma Hepp, Deputy Chief Economist and Interim Lead at CoreLogic, discusses what happens and what it means when you sell:

“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”

Bottom Line

The housing market is still a sellers' market even though it has subsided from its high fervor. As you prepare to enter the market, let's connect so you know what's happening with buyer demand and house prices in our neighborhood.