What is up with this market?!?!
Our median home price (stick built) in the month of March was $485,000! That is up almost 17% from a year ago. If you own your home, you are earning equity daily it seems. In fact, just looking at what has closed in April, our median sold price is $492,000 right now (April 22nd).
We listed 592 homes in March and if we continue on the pace we are on this month we are looking to put over 600 listings on in April! This is good, but still not enough to tip the scales to a balanced market. We are selling them almost as fast as we are listing them. It took around 18 days to get into contract in March and I think we might see that number fall in April. That’s a pretty quick turnaround time especially when you see that we are selling property for about 102% of list (asking) price! Woah!!
As you can see, this market is FAST. It’s so fast that watching properties go pending every Sunday evening/Monday morning feels more like cardio than work. It’s so fast that it’s forcing some change in how we do things. I’m noticing a few trends and I think it’d be fun to give you a ‘behind the scenes’ view of a couple of them.
Behind the scenes
- Listing agents used to present offers as they came in and generally got back to you within 24 or 48 hours. Now, because you’ll more than likely receive multiple offers, listing agents are giving a deadline to buyers to get their highest and best offer submitted. This date is usually the first Monday the house is on the market.
- Most of the offers I see or write contain verbiage stating the buyer will pay cash up to a given dollar amount over appraised value. This just wasn’t a thing a couple years ago! If the appraisal came in lower than the purchase price, we either renegotiated or the buyer dipped.
- More homes seem to be coming on the market on Thursdays and Fridays than any other day.
- Contingent offers (buyer having to sell their current house in order to buy this one) are not appealing to sellers right now. Because of this we are seeing a much larger percentage of sellers requiring at least a 60 day rent back after close of escrow. This allows the seller to write offers that aren’t contingent on them selling their house.
- FOMO (fear of missing out) – I spend most of my day looking at the new listings just so I don’t miss something for one of my buyers. I know my clients are doing the same thing; just watching their Zillow app on their phone hoping a winner comes across.
Ready for Battle?
These are just a few of the changes realtors and our clients are adapting to. This market is FAST. It feels like the entire inventory turns over every week. We really have to bring our A-game every day.
The market is a true battle every day but I’m lucky enough to work with some of the best clients on the planet and we are all fighting through it!
Give me a call if you want to see what your home could sell for right now (even if you’re just curious) or if you want to test the waters in the buyer pool!
Let’s get it!
SIGN UP FOR CAL’S RENO REAL ESTATE INSIDER NEWSLETTER FOR UPDATES ON THE LOCAL MARKET, NEW/NOTEWORTHY BUSINESSES IN THE AREA AND MUCH MORE.