A Graph of the Ups and Downs of the Real Estate Market
After a record-breaking 2021, the luxury real estate market is shifting. Increased prices and mortgage rates, along with a 2022 stock market decline, have made many buyers hesitant. Both Wall Street and Main Street see increasing odds of a recession in 2022, and buyers have begun anticipating price reductions, making them hyper-picky.
There are a number of strategies sellers can adopt to lower their risks.
Don’t buy before selling. Inventories are rising and homes are taking longer to sell. The financial pressures endured before selling your older property might be too intense.
Accept the new market reality by carefully considering every offer you receive, as buyers have gained more leverage in negotiations. You might have to price below existing comps, but don’t price listings to an artificially low level.
Make sure homes are well-prepped, staged, priced, and marketed. With higher inventories, buyers are competing less to find a home and will respond well to a home that shows excellence in the details among similar properties.
Finally, don’t panic. Homes will take longer to sell in softer market conditions. Stay well-researched in market conditions and adapt as time goes by.
Market shifts are times of uncertainty and risk for all parties in large residential transactions. Whether a softer, more buyer-oriented market is here to stay is uncertain, but sellers can protect themselves during transitional times by following the advice of experienced agents.
