Sellers have something to smile about at last © Andy Dean - Fotolia.com
Here is some bright news for buyers, according to Realtor.com, new MLS listings were up in early to mid-April by about 40% over last year. But that statistic needs to be kept in context. At this time last year, pandemic fears were in full swing. Listings dropped while people tried to figure out what was coming next. Then the residential market rebounded quickly. What you can learn from this is that if new listings continue to outpace last year’s listing going forward, it will indicate relief for buyers is on the way in the near future. If new listings stay flat or decline, it will continue to be an extreme challenge for buyers.
Either way, prices are still very high and going higher. In March, the year-on-year median price for an existing home was up 17.2% at $329,100. The market remains tight and expensive but it could be opening up to at least give buyers a larger selection to choose from.
One strategy for buyers in this extreme seller’s market could be taking a bit of a risk. The risk is sitting on the sidelines for a month or two to see what the market actually does. Right now, we are in what is traditionally the hottest market of the year. Sitting on the sideline does risk that prices will be even higher and there will be fewer listings two months down the road. Or, prices could stabilize and in two months there could be a wider selection with less competition. No one has a crystal ball but here are a few tips to help you figure out what might work in your situation.
If you are in an extreme seller’s market, you might want to go in with your eyes open to bidding wars. You need to be looking at homes listed well below the top end of your budget. In the end, it comes down to the numbers. Winning a bidding war means that you have to want the home more than the other guy does and that you can afford to pay more than the other guy.
What tips and experiences can you offer buyers an extreme sellers’ market? Please share by leaving a comment.
Also, our weekly Ask Brian column welcomes questions from readers of all experience levels with residential real estate. Please email your questions, inquiries, or article ideas to askbrian@realtybiznews.com.
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