Over the past year, the real estate market has undergone a noticeable shift, characterized by record-high interest rates and rising inflation, which has resulted in affordability challenges for home buyers. Consequently, it’s become evident that buyers are being far more deliberate and picky in their home buying decisions compared to previous years.
For those contemplating selling their homes this year, it’s crucial to gain a clear understanding of the current market dynamics in order to position yourself for a successful sale.
Here are 3 market insights every seller should know about:
1. Home staging, prep, and presentation are crucial.
With the highest interest rates in decades, buyers are more price-conscious (and therefore pickier) than ever. Buyers are significantly stretching their budgets and, therefore, aren’t willing to compromise on their non-negotiables.
2.Your home might not sell in 2 days.
The amount of time active listings are staying on the market is getting longer — with the median days on the market at around 12 days for properties in Chester County. That’s about a 10-day increase from last year (but still lower than pre-pandemic averages).
Affordability concerns have caused many buyers to step back, and fewer buyers mean homes are sitting a little bit longer.
Search Criteria : Time frame is from Mar 2023 to Feb 2024, County is ‘Chester, PA’, Property Type is ‘Residential’ . Results calculated from 5,137 listings.
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3.You might not get the price your neighbor got 6 months ago.
Higher interest rates, coupled with the rapid price appreciation we have seen in recent years, have significantly impacted affordability… and while buyers may have been stretching their budgets when they were just higher prices, now many simply can’t afford the current market with the 6-7% interest rates. The 1.5% increase in the interest rate (from 5% – 6.5%) increases the monthly payment on a $400,000 home by over $300 / month.
Buyers simply can’t afford today what they could when your neighbor sold their home 6 months ago when rates were around 5%.
Your home must look its best from the moment it hits the market. So, invest in repairs, decluttering, updating, and staging to help create the best possible first impression and allow buyers to visualize themselves in your home. Contact the Ann Byer Team for expert advice and guidance on your home sale!