In an ideal situation, buyers would always search for homes in a buyers’ market, and sellers would always be ready to list in sellers’ market conditions. However, personal limitations, persisting market trends, and other factors often push buyers and sellers to make a home transaction in a changing market. The best way to navigate these changes is to work with local professionals like those at the Dicker Morin Group. They’ll have the expertise to advise your Travis County or Austin home transaction.
Currently, areas in Travis County like Downtown Austin, Lakeway, and Bee Cave are experiencing cooling trends. Home sales have decreased 33.4%, while inventory is on the rise, currently at 3.1 months. Although these trends make it easier for buyers to search for properties, they still should watch out for median prices, which have increased 5.8% year-over-year. With this in mind, here’s what to consider as a buyer and a seller during a changing market.
Market changes in buyers’ favor
A market changing in a buyer’s favor, or a cooling seller’s market, is marked by a few things. Rising inventory creates more options for buyers on the market, which results in longer market listing times, more negotiation power, and lower prices. Alongside more inventory, buyer demand decreases, creating more competition between sellers and fewer sales overall. Currently, the Austin area and many markets across the country are experiencing a cooling seller’s market.
Another consideration to make is the types of properties available on the market. As trends shift in buyers’ favor, there will be more listings, which means more options. Knowing your choices also provides a buyer the chance to compare listings for homes for sale in Downtown Austin, which provides leverage to make a better offer.
Sellers should also consider the need to know their buyers and use additional marketing techniques. Once you’ve listed your home, it’s important to know what a homebuyer is looking for and to do your best to accommodate that for a quicker and higher sale. This may result in more buyer concessions or home repairs. Helping your home stand out with marketing helps boost its visibility, making it easier for buyers to pick your listing out from the competition.
Market changes in sellers’ favor
A local market that changes in a seller’s favor, or a rising sellers’ market, is marked by a few factors. Low inventory makes options scarce to an increasing number of buyers, resulting in rising median prices. Properties tend to sell quickly, and buyers have less power to negotiate as well as a higher risk of missing out on a sale. Much of 2021 was a seller’s market, exhibiting signs of low inventory and extremely high prices.
Buyers should also consider being fully prepared before making an offer. The time it takes to get a mortgage preapproval can jeopardize a home offer or disqualify your offer from the running if you don’t begin your search with preapproval secured. Among the competition, it’s easy to settle for a home. Be aware of your disadvantages, but don’t choose a long-term investment you’ll end up regretting.
Although a seller may be able to get away with home problems that they wouldn’t normally be able to in other market conditions, it’s still important to prepare the home for sale. Depending on how much the market has shifted, a dirty property or malfunctioning home systems will still discourage a buyer from making an offer. Also, continue monitoring the market, particularly for properties like your own in price, to track changes.