• Mon. Nov 28th, 2022

A new normal: the shift to a buyer’s market

ByWillie M. Evans

Aug 26, 2022

Over the past two years, the real estate market has strongly favored sellers over buyers. Listing agents found themselves in the middle of an anomaly as it quickly became the new norm to receive more than 20 offers on a home within hours of it arriving on the multiple listing service.

Buyers were faced with waiting lists and bidding wars, leaving little choice but to go to great lengths to keep bids competitive, including waiving appraisals, inspections, bids in cash and offers well above the asking price. While such a market was convenient for those selling their homes, those looking to buy hoped for a light at the end of the tunnel. And finally, it seems that the light is near.

Heading into a post-pandemic market, interest rates have resurfaced around the 2019 national average, which was the 15-year average prior to 2020, median selling prices have steadily declined since June, and stocks have tripled in the last three months. These changes are key factors in rebalancing the market and empowering buyers.

During the first week of August, mortgage rates fell below 5% for the first time since April. While the 0.31% decline is still up from last year’s record highs, it is still a sign that we are heading into a more buyer-friendly market.

In addition to a slight drop in mortgage rates, the average home price is down $17,000 from the all-time high reached in May. The Las Vegas market has about 9,800 active listings, more than double the inventory at the same time last year.

As inventories are expected to continue to climb and prices and rates fall, buyer activity could start to kick in. As the options multiply, buyers can finally say goodbye to waiting lists and bidding wars, and hello to more freedom.

What does this transition to a neutral market mean for buyers, sellers and agents?

Slow down and look around

Buyers can slow down the home buying process and look at multiple properties instead of placing an offer on the first available home. Since the market has started to cool down, the pressure of competition with an overwhelming number of other buyers is no longer the main concern. More time to shop allows the buyer not only to find the best deal, but also to find the best property. Agents can also help their buyers by ensuring prices are fair to the current market by comparing nearby competitors (comparable properties).

More lender choices

The same goes for mortgage rates. Buyers can compare rates from several different lenders. When looking for a lender, it’s important to look not only for a competitive rate, but also for the most reputable lender who shares the common goal of closing the deal.

More houses to choose from

Increased inventory is very beneficial for buyers, but tends to take a lot more effort from sellers and agents to make a property stand out. If there are four properties available on a street, what makes one more attractive than the other?

Repairs and upgrades

Completing home repairs and upgrades can increase property value and appeal. Now is the time to walk through the property and make those small fixes and improvements, like painting, sealing cracks in the tiles or smaller items that might come up during an inspection and potentially interrupt the transaction or return the property. ‘Buyer.

Market your ad

Listing agents can also make a property stand out through thorough marketing and staging efforts. Among a variety of real estate marketing strategies, the most basic methods are often overlooked, including photography. Home photos are usually the first thing buyers see, making them the perfect way to stand out. Staging is also a very valuable technique to help a buyer project themselves into the home. Decluttering the space of the seller’s personal items or removing furniture can showcase its size and potential.

Whether you’re a seller, buyer, or agent, a healthy neutral market ultimately benefits everyone. We are heading towards pre-pandemic levels, which means sellers are more willing to trade, buyers have more inventory to choose from, and prices are stabilizing. While buyers have been hesitant to enter the market for the past two years, there is no better time than now to take advantage of buyer-friendly opportunities.

Allen Zeller is a real estate agent with Berkshire Hathaway HomeServices, Nevada Properties. Since his first year as a realtor in 2017, Allen has been named Director of Pinnacle Sales, landed in the top 25 agents for Berkshire Hathaway Nevada Properties, was selected for the President’s Circle, and is consistently ranked in the top 10. best agents in his office.