The real estate market in the Desert is seeing some changes. Earlier this year and last year, listings were only on the market for hours, with multiple offers and, many times, no contingencies or inspections. Wild times and you’re lucky if the seller accepted your offer.
However, change is in the air.
The housing market is cooling – more listings on the market with fewer buyers able to buy with continuing high prices and interest rates. As a result, sellers have more competition, and buyers are less likely to submit offers over the listing price without contingencies.
If you’re listing your home in today’s real estate market, you can’t base your listing expectations on what happened last year or even six months ago.
First off, there are fewer (if any) bidding wars on homes now since more homes are available to buyers now.
Buyers may not offer over the asking price and may offer less than the list price. “Today’s buyers are spending hundreds of extra dollars per month in mortgage payments because of higher mortgage rates,” Realtor.com® Chief economist Danielle Hale explains, “They aren’t able to stretch their budgets and put in offers that are as high as they might have been able to last year when mortgage rates were lower.” (REALTOR.com)
Other Changes
Buyers are starting to include contingencies in their offers. Sellers may want to prepare that buyers have returned to, including inspections and financing contingencies, and may even ask for repairs or concessions.
Sellers are now seeing their homes stay on the market longer. It wasn’t that long ago that you listed your home, and in a matter of hours, you had multiple offers and were able to accept one. “If a property price is right and sellers are honest with themselves about how much they can get for their home, it won’t sit for long,” he says. “The homes that are sitting or reducing their price are ones that are overpriced for the market.” (REALTOR.com)
If you’re thinking of listing your home in Palm Springs or the surrounding area, give me a call, and let’s discuss your options for selling your home.