2023 Spring Housing Market

It's late April and we're in the middle of what would be "the buying season" in whatever would pass for a normal year in real estate.  I don't know that 2023 is what I would call a "normal" year, but it does appear that the market is coming a whole lot closer to falling back into recognizable seasonal patterns. 

The market is definitely busier than it was last winter. Credit that to the Spring season, some slight breaks in interest rates, people getting tired of sitting on the fence, whatever the reason, it's picked up.  After about October things seemed to just lock up.  I suspect many sat out waiting to see if there would be a recession or prices would drop, etc. So what HAS happened?

What I'm seeing on the ground is a sort of split-personality market. Back in early 2022 anything with a roof was selling. Even the somewhat tragic ones, (for lack of a better adjective). You know the type, not clean, yard unkempt, odors, painted weird colors, too much clutter, ugly carpet, ugly everything.  Maybe a bad or just less desirable location, (facing real busy street, backing up to commercial or something else not-so-hot).  Now, not so much.  Sellers have to go back to the pre-pandemic era where you prepped your house to sell, (some painting, maybe new flooring, yard clean up, de-cluttering, etc). or face lower offers as well as a longer time on the market.  In the current market it seems buyers don't want to stretch themselves to get into a house, then have to spend a bunch more on repairs or updates. 

The pristine houses that present really well seem to be another story this Spring.  After a slow winter, people are getting back out, to buy at least, to sell is a whole other story.  Inventory has remained very tight, and in many of the neighborhoods I do sales in, it seems to have only gotten tighter.  This is especially true when you sift out the "wishful thinkers" that list their houses at prices they would not have obtained at the peak of the rabid market, (again with the lack of a better adjective), and they are very unlikely to obtain them now.  This leaves the nicely done, appropriately priced homes that present well as rare beasts.  In one neighborhood I've seen a fixer upper sit and sell at a discount, while a similar sized one that was "done" sold above list in multiple offers, reminiscent of this time last year. 

So many sellers are not willing to give up their current low interest rates to get into a bigger house which has resulted in considerably fewer homes coming on the market. Those that do, if they present well, are still moving fast and for top dollar.

Moral of the story? If you want top dollar as a seller, you have to put in some effort and a little money to get your house ready.  One of the biggest delusions many sellers cling to is the adage "....a buyer can pick how THEY want to fix up the house and pick their own flooring and paint and updates..."  Sellers can cling to this like it's some kind of bonus to a buyer that the house needs work.  It's not. If you don't want to do work on a house you already own, what makes you think someone else does?  You may not be able to do all the things it could use, and yes, there's a point where you have to draw the line, but some cosmetic updates and a lot of cleaning and decluttering can go a long way.  If work is not an option for whatever reason, then it will come down to overcoming it with price. 

If you're a buyer looking for a deal, oh there are actually some out there, but don't hold your breath on getting a steal on that picture perfect, move-in ready house.  The deals, as was the case FOREVER prior to the pandemic, is on the ones that need some work. That said, the cheapest house is not always the best deal. Inspections are important and in a perfect scenario, it's the one that just needs cosmetics to really shine that offer the best opportunity for bargain hunters.  

Ultimately, I'm a firm believer thought, that you've got to buy the house you fall in love with.  There's seldom, if ever, a "perfect" house that checks every box & meets every expectations, but when there's one that gets your pulse to quicken, it may be the one!  As always, if you are in the market whether buying or selling, give me a call, text or e-mail.  I'd love to earn your business.