With the growing concern that mortgage rates are about to climb, more sellers are putting their property on the market. There is a typical increase in homes and condominiums for sale as the summer season approaches and families begin to consider their vacation plans. Add to that the fear of increasing mortgage rates, and you begin to see a slight balancing in the market place.
This is good news for first time buyers, who have of late been in a highly competitive market. It in no terms means an end to the multiple-offer situation that has continued to frustrate entry level home buyers for several months. What it does mean, however, is that there will be a decline in the number of offers submitted per property. Additionally, there is the possibility that the list price-to-actual sale price ratio may become tighter, meaning that the percentage over asking price will be lower, and more in line with actual market value.
The upcoming months will not be all roses, however. As the inventory expands and the number of competitive offers per property decline, it is likely that sellers will insist on slightly higher asking prices. Since sellers won't be able to rely on buyers to push the sales price from affordable to barely reasonable, they will most likely set list prices where they truly expect to land at the end of the sale.
Buyer's tip: Make sure you're Realtor does an extensive comparable analysis to any property you are considering putting an offer in on. Finally, always arrive at an offer price after doing your homework: factor in information revealed in the disclosure packet, and always make an offer based on what price YOU think is reasonable for the property in question.
Have more questions about trends in the housing market? Questions about selling or buying a home? Contact me today for honest, experienced answers.
Amy Blakeley, Realtor®
ablakeley at mcguire.com
(415) 296-2173 Direct