What Sellers Need to Know About Today’s Housing Market

Thinking about selling your house? You may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.

As Lawrence Yun, Chief Economist at the National Association of REALTORS® (NAR), says:

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

Buyer demand has slowed over the past few months. Higher mortgage rates made it more expensive to buy a home. The result is fewer bidding wars and less competition among buyers (see visual below):

But don’t forget that’s compared to the severely overheated market we saw over the past two years. According to the latest Confidence Index from NAR:

“39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”

While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.

Work with your agent to price your home for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a sellers’ market especially here in the Santa Barbara area.

Santa Barbara’s natural boundaries restrict growth. Bounded by mountains and ocean, with the 101 highway narrowing to a pinch point at both ends, we enjoy natural protection from urban sprawl. With a coveted lifestyle attracting buyers from all over the world, we continue to experience market pressure. But with rising interest rates, buyers are more hesitant these days to get into a bidding war.

Ready to sell your home? Seek the advice of a real estate professional. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, explains what’s happening and what it means when you sell:

“Signs of a broader slowdown in the housing market are evident, This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. Nevertheless, buyers still remain interested, which is keeping the market competitive particularly for attractive homes that are properly priced.”

Bottom Line

While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. If you have equity in your home, you’re in a prime position to capitalize on today’s market.

Let’s connect so you understand what’s happening with buyer demand and home prices in our local area as you get ready to enter the market.

Call me or text me for a confidential, no-obligation consultation. For text inquiries, please use the keywords, “real estate inquiry.”

I look forward to hearing from you.

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Lori’s reputation for exceptional service, discretion, and uncompromising integrity is at the heart of every transaction. With experience cultivated from almost 20 years of real estate transactions, both as an agent and investor, Lori brings her passion, market knowledge, and unmatched work ethic to each transaction.