Here’s an overview of the current market:
There is still a large pool of buyers in the market for a home. Expect good traffic in the first week or so your home is on the market. That early traffic, if it doesn’t result in an offer, will likely give you great insight as to how well you are competing with other homes for sale in your area.
Contingent offers are on the rise. Move up buyers want to make sure they lock in the home to which they’ll be moving before the leave their current one. These transactions are inherently higher risk but with the right due diligence you can discern whether it’s worth the risk as they typically offer a higher sale price than non-contingent offers.
Price appreciation has slowed as is typical in the winter months. There has been some resistance to the high level of price increases we’ve seen over the last 18 to 24 months.
Days on market has increased over the last 45 days as is traditional for this time of year. Homes are definitely taking longer to sell in the winter this year but they do sell in a reasonable period.
The new lending guidelines are impacting the market, but unlike the initial worry prior to them being implemented, the change has actually been for the good. Buyers are getting their settlement statements well in advance of their closing so they have time to review them, make sure they are accurate and get their funds in order in a less hectic scenario than we used to see. Sellers are also benefiting as the buyer is certain of their loan approval well before closing so the loan contingencies are being satisfied sooner.
Fallen transactions continue at a higher than normal rate. While competition is lower than in the spring, there are still instances of buyers jumping too quickly only to change their minds shortly after putting a home under contract. The increase in contingent contracts has contributed to that as well.