2022 has been an interesting year.
We had incredible activity in the housing market carry over from 2021. Multiple offer situations, bidding wars, home inspection and contingencies waived, cash offers, homes selling within hours of listing, some selling off market before even going live. It was cutthroat, stressful and busy!
Homes appreciated an average of 30% and most sales in the last 2 years on the South Shore sold at asking or more likely, over. We saw numbers that we have never seen. This was the story for a good majority of the year & it started to wind down around the end of the summer. The Fed rate hikes have cooled the market, but not completely as some news outlets would like you to believe. Going into the New Year, the South Shore market remains strong. The pool of buyers has not shrunk, if anything it has grown. We started this year and ended in a seller’s market. Our inventory remains low, buyers are still out there, but we are not seeing the frenzy we did months ago.
So where does this leave us?
Sellers still have the advantage, as there isn’t a lot to choose from but, pricing remains the most critical factor. I hate to be the bearer of bad news, gone are the days that you can throw any price up and buyers will pay. Pricing a home in this market needs to not only bring the buyer to the table but also needs to take into account the rising interest rates and inflation. If you list higher than you should, you run the risk of a price reduction, which in turn you lose your leverage and potentially, money on the table. Comps for pricing homes are being adjusted as the market shifts. Pricing has always been one of the most important factors in selling a home, but even more so these days.
Even with high interest rates, buyers also have an advantage. In some markets, homes are sitting longer. If the home has been sitting for a week or two and you love the house, there is zero harm in making an offer lower than list. Worst case the seller says no, or it could open up for negotiation with a counteroffer. Do not wait until the seller drops the price, now you are in competition with everyone else for that home. We are seeing the return of home inspections and other contingencies that we didn’t see for quite some time. This is the market “normalizing”. As a realtor, I am happy to see the return of these contingencies as it’s so important to protect your most valuable asset. I would never recommend waiving an inspection to any client for any reason.
What the market will do in 2023 remains to be seen. None of us have a crystal ball or the keys to the castle. We’re in this together with you and will continue to perform the best job we can in every market.
Wishing you health & happiness in 2023! May it be your best year yet!