3 misconceptions about the residential real estate market
Much like we experienced at the onset of the pandemic, the residential real estate market is having a moment where many are unsure of what to expect. Unfortunately, that has led to some misconceptions. We wanted to set the record straight.
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Myth: Home prices are about to plummet
Reality: Normalcy is returning
The home buying frenzy of the past few years was not normal, and it was not a rational market. With the rapidly increasing home prices and extremely low interest rates, it was a zoo! We now have three times as many homes for sale as we did in March, and interest rates are hovering in the mid 5% range. This doesn’t mean that prices are going to plummet, but it does mean that sellers will actually have to compete in the market to get the best price.Myth: Buyers will still line up for overpriced homes
Reality: Homes should be priced at market value to sell
All summer, asking prices” have been 10-15% too high, which has resulted in a slew of price reductions which you’ve probably heard about in the media. This doesn’t mean that actual “real” values are dropping, it just means that sellers got too greedy with their asks and had to return to market value.Myth: Homes can be listed and sold without much prep work
Reality: Owners need to stage homes to sell
Gone are the days of listing homes in as-is condition, with no real staging or preparation. In today’s market, not only do homes need to be priced appropriately to sell, but owners also need to put in the time and effort to create a great first impression with curb appeal, staging, paint, and more. Moving forward, we believe the market will reward turn-key homes – particularly those in premium locations.
Author: Tucker Blalock is co-founder and managing broker at The Brokery. Tucker specializes in the Biltmore, Arcadia, Paradise Valley, and Scottsdale areas.