Despite the rumors in the media, our market isn’t crashing.

What does it mean for a market to normalize? Over the past three years, sellers could simply list their homes at whatever price they wanted and wait for buyers to compete with each other. It was more or less a free-for-all. Those days are over now, however. Rising interest rates and steadily climbing home values have slowed down the market.

For example, we recently had a buyer interested in a home that was listed for $600,000. The maximum comparable was $455,000, so that’s what we offered. Our offer was accepted, and when the appraisal came in recently, the price of the home had increased to $465,000, which is typical for a normalized market.

The days of sellers pricing their homes however they want are over.

So what does this mean for buyers and sellers? Interest rates dropped by about 10 basis points last week, meaning that if you’re able to buy a home, now is a great time to do it. For sellers, you need to price your home according to the market or your listing may sit without any activity. Also, understand that in a normalized market, many homes won’t sell within the first 24 hours like they have in the past. It may take between 30 and 60 days for your home to sell depending on its price and condition.

Both buyers and sellers should work with an experienced Realtor. Many new agents entered the industry within the last couple of years, so ensure you work with someone knowledgeable and experienced because they’ll understand what’s happening in the market and how to approach our changing conditions.

If you have any questions about the market or how it affects your real estate plans, don’t hesitate to give me a call or send me an email. I hope to hear from you soon!