Stop! Wait a minute…I need to catch my breath!!! This market is crazy!
Although historically this is our area’s busy season….this is well beyond busy! We have so many Buyers wanting to move here from all over the country, and just like every other market we still have very little inventory. Builders would like to have more completed construction, but can’t because they can’t get their materials delivered in time. The quote they received when they placed the order has now increased because material costs have really jumped up and not just on lumber. These delays cost the builders money which they then have to pass onto the price of the home. It has created a frenzy for completed construction homes.
I always say to my customers no matter if they are Sellers or Buyers….it is price or terms you rarely get both. In this market that is NOT the case for Sellers as they ARE getting their price and NO seller concessions. We are now starting to see Buyers structuring their offers to pay a portion of or all of the SELLER’s closing costs along with their own!!! Many agents are holding their Open Houses the very day they put the home on the market to allow as many Buyers and Agents a chance to view it before the multiple offers start flooding in. Listing agents are reviewing and prepping Net sheets for each offer and then spending a few hours with the Sellers going over the pros/cons of each offer so they can make the best decision for themselves. Some Sellers may call for Highest & Best, but there are some that just don’t want to deal with that and will make a decision based upon what is presented to them from the start.
This market is quite frustrating and stressful for Buyers as they are rushing from home to home and making split second decisions on whether to make an offer or not. Then how much do they offer? You will see in reviewing the market stats there are a few areas that are 0% off of list. Many are waiving inspections and offering to pay the difference between appraised value and contract price. What???? Offers are well above list price by $16K-$20K and still not landing the deal! It is exhausting for the Buyers and their agents who work so hard trying to find the next home.
How long will it last? Well nothing is indicating a slow down and experts believe it will continue through 2021. Perhaps in 2022 we will begin to see a plateau but I do not feel we will experience the “crash” of 2007 that lasted a decade. Real estate is cyclical so still a solid investment!!!
Until next time....