Activity-wise, July started out fairly quiet but soon picked up. It’s like the shock of late April that changed the market in June wore off and all the buyers and some motivated sellers came out again, blinking in the sunlight.
I sold my listing on Spring Street after a small price reduction. Sometimes just a small nudge is all it takes.
For my buyer clients I showed 42 homes in July to eight clients. I submitted three offers and was successful twice. For comparison, back in the springtime I was showing closer to 70 homes and submitting 7 or 8 offers a month to reach the same level of success — so I guess I am working at 3/4 speed, no no honestly I’m working at less than half speed. Another difference with the two successful offers – both were bought under listing price and both were loaded with the regular conditions (mortgage financing and home inspection). I would say that we are very quickly returning to a balanced market. Once the autumn market arrives, we will know for sure.
Also in July, in contrast to June and some of May, only two of the listings that I showed cancelled without selling and 24 have already sold. Back when the market suddenly changed, there was a lot of randomness, cancellations, inactivity, price reductions, price increases…Generally, of the listings that I showed that sold, they sold for an average of 5.6% over listing price, though 7 sold for less than asking price.
All in all, it is a good time to be a buyer though some sellers still are living in the recent past, which is a great time to live except if you really want to sell your home.
Living in the past
For the record, as realtors, we are always living in the recent past. What do we do when we price houses? We look at recent sales. And what do we do before we offer? We look at recent sales. What we should be doing is looking at where the market is going to be when the offer arrives. We should be looking to the future.