Good news. Buyers aren’t having to make aggressive offers like they used to (even when there are multiple offers). Let’s talk about this today. I suspect this is true in many areas across the country. I’d love to hear your take.
UPCOMING (PUBLIC) SPEAKING GIGS:
8/11/22 Realtist Lunch & Learn (sign up here (open to anyone))
8/15/22 YouTube Live with Matt Gouge (details TBD)
8/25/22 State of Housing Brunch & Learn (sign up (for real estate community))
1) Buyers are finally getting in below the list price
On average properties sold about 2% below the original list price last month in the region, which means buyers are not having to endure insane bidding wars to get an offer accepted (most of the time). This is a far cry from last year when the average was 3% above the original list price. Keep in mind an average below doesn’t mean everything is selling below the list price.
2) Bidding wars aren’t completely dead like some think
“Everything is selling below the list price.” That’s what some people think, but it’s not true. Seriously, there are still multiple offers in today’s changing market. In fact, 47.0% of sales last month had more than one offer in the Sacramento region per MLS stats.
3) Offers from buyers are becoming less aggressive
The table below studies sales that ONLY had multiple offers, and the big takeaway is that when multiple offers happen, properties aren’t getting bid up way beyond the list price like last year. I realize this isn’t a shocker, but seeing it in the stats is important. There are also more properties today that had multiple bids and still sold below the original list price. Sellers, did you hear that? It’s easy to think, “multiple offers = selling way above the list price.” Nope. Today you might get a few offers at best, but buyers are getting used to the idea of making less aggressive offers and expecting concessions too.
4) There are fewer properties getting bid up 10% and more
Here’s another way to see the difference between last year and this year. I know, there are way too many orange dots, but can you spot more sales last year going above the original list price (above the 0% line)? There were so many more properties last year that sold above 10% too. Also, there’s been a big drop in the number of sales this year (fewer dots).
5) A spike in supply is giving buyers more control
Check out the number of available listings in today’s market compared to last year at the same time. Keep in mind we saw massive price growth from one year ago, which explains more listings above $500K in particular.
CapRadio Interview: Last week I did an interview with our local NPR station. We talked about housing demand, uncertainty salad, and lots of things. It’s about ten minutes. Check it out here if you wish.
Thanks for being here. I truly appreciate it.
Questions: What are you seeing happen with offers right now? What advice do you have for buyers or sellers? I’d love to hear your take.