Hey Buyers- Your Time Has Come (Sorta)

If you have been home shopping in the last two plus years, you probably feel a little battered and bruised. Many buyers have put in multiple offers on homes of their "well not quite, but close enough" dreams. And in order to put that less-than-perfect place under contract buyers have had to pretty much concede to every whim of the seller.

BUYER: Oh you want to stay in my new home rent free for 6 months? Sure! I mean I am only paying the mortgage now. But no problem.

BUYER: Golly-gee, the appraisal came up short? No worries. We don't mind being under water on a home the minute we turn the key. We really like this place a lot and plan to be here for YEARS (gulp).

BUYER: You mean the other buyer isn't asking for an inspection? Um... I mean okay... even though the floor is literally crooked. Consider it done!

While we believe we are far from a bonafide buyers market, we think the pendulum is starting to shift based on a review of local June real estate data. With most experts predicting a return to normal appreciation rates and not a fall off a cliff, we think now is a great time to buy.

Here is the evidence:

1) Price drops are back! Emmet County had 30 price drops and Charlevoix had 21 in June 2022. We believe it's a combination of sellers swinging for the fences on price and the impact of interest rates and the economy. We aren't faulting sellers for reaching for the stars as the market has been hard to predict and we are less likely now to have the help of a competitive bidding process to set the price of a home. Afraid of leaving money on the table, sellers are electing to price a little higher and then drop if necessary versus pricing low and let the market bid a home up to market value (Pssst sellers- this might not be the best strategy, but that is a different article).

2) Inventory is UP! Except for the an anomaly in Emmet County and Petoskey due to a number of new condo units hitting the market last year, every market saw an increase in new listings year over year (Harbor Springs up 34%, Charlevoix County up 16% YOY).

3) Price appreciation is beginning to slow, at least a little in some markets (Harbor Springs had a big month at 38% but on small sample size so not super significant). We expect this to continue as sold price is a lagging indicator with most of the deals closing in June having been negotiated in April and May (Petoskey sold prices up 14%, Charlevoix County up 6% YOY) . 

4) While average days on the market were still declining in June, we expect this to turn in the July or August data. Days on the market are calculated only on sold listings and we know that the pace only recently had a meaningful dip.  Team Winslow has rebuilt a listing inventory and while some deals are still pretty competitive for unique waterfront property or homes under $300k, our more typical residential listing is taking just a wee but longer to go under contract. Other realtors and vendors have validated this and we know the numbers will soon too.

Over the past several months we have worked very hard at Winslow Group Real Estate to still love our buyers and get them the home of their dreams. We have encouraged them to use assertive but appropriate tactics and have balanced the need to be competitive with integrity in supporting clients in finding a home and doing what is best for them. We never disappeared or stopped seeking buyers as we knew a day would come when there would be a shift in power from seller to buyer.

Why is it important for your realtor to be on top of the latest data in the industry? Knowledge is negotiation power and going deep in the numbers help both buyers and sellers put together fair deals that stick together like peanut butter and jelly.. 

Whether selling or buying we can help put what we know to work for you. Call or DM for a consultation today