RE/MAX president and CEO Nick Bailey says the August RE/MAX National Housing Report may indicate positive changes for both buyers and sellers.
The report shows decreases in sales prices, as well as an overall increase in days on the market. While this could be due partially to high interest rates, Bailey says the shift in the market could open up opportunities for buyers who’ve had to put their plans on hold.
“The decrease in median sales price and stabilization of home prices is great news for buyers who have been patiently waiting on the sidelines for the last few years,” Bailey said. “And the change in conditions should ultimately be favorable to sellers as well, as buyers re-engage with renewed enthusiasm.”
Despite the fact that the historically low interest rates seen during the pandemic are gone, home prices have not decreased enough to offset the significantly higher interest rates buyers are experiencing in 2022. However, many agents say the market is simply correcting itself.
“The problem is, people haven’t seen a normal market in so long, they’ve forgotten what it looks like,” said Nashville RE/MAX agent Maria Holland. “The percentage of appreciation has gone up at such a great rate, it had to stop. There’s always a ceiling and a floor…Prices are going to stay up, but they’re not going to keep going up.”
Holland advises sellers to refocus on staging and presentation, saying the days of selling homes “as is” in a single day are long gone. “I always say that a home is like a first date. You get one chance to make a good first impression when someone walks in the door. So, prepare you home,” she said. “You might have to declutter, you might have to paint, you might have to stage, and you’re going to have to spend some time with a good photographer and do some advertising — and possibly have an open house.”