It would seem that there has been a correction in the market. (yay)
What does that mean for you as a Buyer or a Seller?
It would appear that the days of underpricing homes will soon be over, which is good for individuals families & our communities. Good for both Buyers and Sellers. Why? Well, I'll tell you!
Buyers; Buyers can now start having homes sent to them by their agent that are PRICED within their price range rather than priced 50-100K lower than what they can afford due to needing to compensate for crazy bidding wars. So, there will be less disappointment, less bidding wars or less offers in the homes that DO end up with a bidding war. This means that the whole ordeal of purchasing a home is less stressful now, or at least that it's beginning to get there.
Sellers; Sellers can now price their homes at what they're WORTH not take a chance of low-ball offers way lower than their homes are even WORTH with these weird under-pricing tactics. Meaning, as a result, less walk-through traffic from those who can't actually afford the home at it's true value... meaning less potential contraction of COVID-19, less showings where the homeowner needs to leave the home (a frustrating part of listing) & less pointless showings from people who can't afford the home... Again, making the process a lot less stressful and frustrating overall for both Sellers and Buyers. Less over whelming all around.
So, what exactly does a 'correction' mean and why did it happen ?
Basically, in laments terms, due to a change in the approval process for mortgages there are less Buyers in the market over all, meaning less crazy investors from different areas and locally, less demand due to this as well. As a result, there will be less bidding wars, less underpricing etc. It means that the market has returned to a NORMAL state (or is at least moving in that direction). So yes, it might take more than an hour to sell a home, but it will still sell at a normal price and rate so not to be worried your home will still sell. However, one of the benefits is that more families and first time home buyers will stand a CHANCE at buying a home rather than investors and 2nd, 3rd, 4th time home buyers.
This is really important because community matters and it won't be good if our communities are owned solely by investors. That means no money back into the local economy, no home owners (more tenants), crazy high prices of homes (finally fixing themselves) so its great to see that now more actual 'end users' as we call them will be able to purchase, live in and love their homes & in turn, our local communities.
Agree? Disagree? Tell me your thoughts!
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