Buyers: It's Your Time Right Now.
If you want to know how I spend my money in the real estate market, you’re going to want to bookmark this. Sound the alarm for buyers, because I am telling you—it’s YOUR TIME. I have never seen this many price reductions! It’s time to go shopping, because there are deals to be made.
It’s Time To Pounce
Agents tend to buy their homes in the fall and winter because there’s less inventory and fewer buyers. What’s happening in Marin County is there are fewer buyers, but great inventory as we are on the heels of an economic crisis right now—with mortgage interest rates at an all-time high, highest they’ve ever been since 2008.
This “moment” we’re experiencing right now is expected to continue until March or April of next year. The reason why I’m making a strong case right now to buy, is that many buyers I talk to are trying to wait. Here’s the issue with that:
If you wait for prices to decline, interest rates will continue to rise. The moment this “waiting period” and fear gets normalized, buyers will go shopping en masse—and you’re looking at another multiple offer situation where you might not be competitive.
It feels like no one is buying, no one is selling, no one is bold enough right now to really make moves but I’m telling you it’s the right time. The slow time is compounded by the economic downturn, and the downturn will continue, but the fears will start to dissipate as the months go by…and people will be more inclined to act. From now until March 2023, we’re going to see price reductions and homes selling for far less than they were selling for earlier this year. So right now is the best time to make moves, when everyone else isn’t so bullish.
The “What ifs”
Now you might be asking: Lisa, what if prices go down even more, even 10% more?
Yes, prices might get a little lower, but historical data that we in the agents community are being bombarded with, shows that even in the worst economic crisis like 2008, prices went down 26% in Marin County—but in Mill Valley it went down only 8%.
So my solution instead of waiting? Negotiate that price. Instead of waiting, you can make your case. You absolutely have the opportunity and grounds to have that conversation.
I know for myself I am definitely going to buy property in this current market in order to gain long-term equity, and prove my real estate portfolio.
Sellers - it might seem like what I’m saying is “doomsday” for you, but I can assure you it's not! You know you don't want to sell right now, you want to wait—but the alternative is to wait 6-10 years. The economic changes we experienced aren’t the norm anymore, or the predictable ones we studied, mainly because of COVID-19. I recently made an offer on behalf of a client, there were 9 offers. We were still 100k over the list price and we weren’t even in the running. So, it can still happen for you, it just depends on how the property is priced and presented.
In summation: Buyers, let’s go shopping and Sellers, get smart with pricing!
