Look at That Line!
Get In Line to Make an Offer
Last weekend, the Bayside team hit some open houses to network and speak to realtors about their experience in this crazy market.
All of the responses were the same, this is the hottest real estate market that they have ever seen in their careers, even those who have been in the business for 20+ years. 5+ offers, homes being sold within 24 hours and all cash deals are becoming the norm with inventory down 56% YTD. Most buyers now are coming in over asking, even as much as 10% to secure the property. Sellers are taking their time with offers and are holding out to receive terms that are satisfactory, like waived inspections and 0 contingencies.
Our first stop on Sunday, January 23rd was in Coral Gables. The showing was scheduled for 12 noon and we drove up at 11:55am and there was a line with more than 10 people outside eager to get in and view the property. (Pics below) This was a first time experience for us even though we have been going to open houses for the last 6 months. Our second stop was at another property in Coral Gables. The property was listed for $985,000 and had been listed for 3 days. There were already 14 offers…
Low Inventory, High Prices May Be New Normal
This type of market is becoming the new norm and it will be interesting, to say the least, on what happens in the near future. Economists at Zillow and Redfin expect inventory to stay scarce, prices to remain high and interest rates to remain low. This does not mean the expect interest rates to remain at all-time lows, as they have been steadily increasing day over day, however anywhere from 4%-5% is still extremely low.
With all of these factors, this gives sellers the upper hand and homebuyers, especially young buyers, the disadvantage. Young buyers who are ready to purchase will be at a disadvantage not only due to homes being more expensive, but also because people are now staying in their homes longer than anticipated.
If you are looking to put an offer down on a home, make sure to visit the home as soon as it is on the market, and be ready to put an offer down almost immediately. Yes, prices are up. However, that does not mean you must over pay. It will take diligence as well as working with an experienced realtor to navigate this challenging market, but it can be done accurately and efficiently.