Is the market changing?

A lot of people are feeling like it's not possible for them to buy a house right now. When there are 10-20 offers on virtually every single listing in the marketplace, it's pretty natural to start feeling that way. Well, the good news is that THIS IS BEGINNING TO CHANGE! Market inventory in Utah has approximately doubled since January/February. The bidding wars have cooled down as the levels of supply and demand have come back into a slightly more natural balance. Don't get me wrong, it's still very much a seller's market. But the opportunities for a buyer to get their hands on a purchase right now are far higher than they have been over these insane past six to eight months. For example, of these four houses I've listed for sale in the past three weeks only one of them had multiple offers. Each one has sold at or above list price, but it's been a nice breath of fresh air for the buyers to not have to bid against 10-15 other buyers on the same house. Personally, I welcome this minor shift in the market and hope it continues. 15-20% appreciation in one year like we just saw is just not sustainable and I don't think it's healthy for our area. Sellers right now can still expect to get a fantastic dollar amount on their home's sale and to get it done in a short period of time. Buyers can expect to continue to have to come super strong on their offers, but likely competing in most cases with just 1-3 other buyers on the same house as opposed to 10-15 offers. Waving all contingencies with non-refundable earnest money hopefully continues to become less necessary. My fingers are crossed for more progress towards a more balanced market. What are you seeing happening out there?

Posted by Dan Kennedy on
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