It sounds CRAZY, but it’s true!
We are back to multiple offers over asking price and with these rates!? I know, it sounds crazy, but it’s true!
But, Cal, how can that be?
Buckle up, Buttercup. I’m about to take you on a statistical journey.
Our median sales price in Reno in February was $515,000. This was the third month in a row our median sales price was almost $100,000 lower than our peak in May of last year ($612,500). This was mostly due to mortgage rates skyrocketing to over 7%. Rates go up, prices go down. This means, the home you were looking at on Zillow in May, has a price tag of 15-20% lower now. Attractive prices.
Sellers have become accustomed to dishing out money to help buyers pay to lower their mortgage rates. Because of this, we’ve seen a lot of buyers able to drop their rate into the 5’s for at least the first year or 2. Appealing rate negotiations.
We ended the month with only 564 active listings. That is less than half of what we had in October. With only 2 months supply of inventory, we are still technically in a seller’s market. Competitive market.
It’s almost spring! Historically, early spring is when we start to see more buyers enter the marketplace. We’ve spent all winter trapped inside, away from the weather… in a home you might not love anymore. Shopping season is upon us.
Listing agents and sellers have improved how they are pricing property. It took us a while to catch up, but we are finally seeing property priced where it should be or lower. You can see this in the percent of list price received. We are starting to move closer to that 100% mark coming in at 97.6%. On the flip side, buyers have come to terms with the rates they are locked in at. Reality: Checked.
In short, prices are low, AND we have very low inventory. Mortgage rates are high, but sellers have been pitching in to help. It’s that time of year, and buyers are coming out of their hibernation. Last but not least, most buyers and sellers are more realistic with their expectations.
I know your news outlet is probably saying something different, but I truly believe it’s a good time to buy. With prices this low and the opportunity for a rate buy-down, you might be kicking yourself if a few months when rates drop and prices rise again.
As long as you price your property correctly, buyers will scoop it up within a couple weeks… maybe even days. Listen to your realtor and study the comps!