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The Three Buds of a Balancing Market
We have a long way to go before the market can truly be called balanced between buyers and sellers. But we are seeing signs that the fever is breaking, even as prices continue to rise and over-list sale prices remain the rule rather than the exception.
This is largely a function of supply and demand, but it also reflects the far more sophisticated approach today’s sellers bring to market. Most have learned that presentation matters — how a home looks online and how it flows during showings — and that pricing to sell, rather than pricing to leave room to negotiate, creates the FOMO that drives higher sale prices and greater leverage with the chosen buyer through to closing.
Yet we are seeing a sharp drop in showings per listing. Waiting in line to tour a home is now a rare occurrence.
Most sellers have learned that overpricing to leave “room to negotiate” only creates a slow start on the market, and a shortage of buyers with whom to negotiate. Despite that hard-won market savvy, a few still believe conditions are strong enough to turn straw into gold. They are the exceptions that soften the statistics, creating inventory buildup and opportunity for buyers.
While homes for sale are up, fewer are closing this summer than last, and the pace of that decline is accelerating month over month. New listings are climbing while closed sales are falling. That combination is the classic early signature of a market shifting from a seller’s advantage toward balance. Homes are also sitting a bit longer in several towns.
Thanks to our illustrious manager, John Bradley, who tracks both MLS-wide and in-office statistics — and our office represents roughly half of all sales and purchases across a representative sample of towns — a few signals stand out:
- Multiple offers are less common
- Price adjustments are more frequent
- Back-on-market scenarios are on the rise
Sellers need buyers a little more than they have in a long time.
There is still a voracious appetite for properly priced, properly presented homes. Any homeowner can make the choices that lead to multiple bids and top dollar on their home. If you’re considering a move, reach out sooner rather than later for guidance on how to come out ahead.
Curious about your home’s value?
Please click below for the market update of interest to you:
Westfield by Grade School:
Scott Gleason scott@luxuryhomesnj.com
Scott Gleason, CRS at Coldwell Banker Realty, NJ Luxury Homes
CLARK, NJ — A community blood drive will be held Wednesday, September 2, from 12:30 p.m. to 6:30 p.m. at the Clark Volunteer Emergency Squad, located at 875 Raritan Road.
