First off, for the record, I do not care to use the word “normal”. In referring to our Arizona real estate market, I’d prefer to use the word stable or healthy. With a market that has been up and down for so long, have we become accustomed to that kind of market? Change can happen very quickly that many are left uneducated with the current changes that impact Sellers, Buyers, and Real Estate Agents. Not keeping a close eye on those changes can end up costing you money in the future.
Over the past few years we have seen some large gains in real estate. The market has made the adjustments to closely follow where we should historically be. These past few months have created quite the buzz and confusion, forcing us to ask where the buyers are. Did they hibernate over the winter months, getting ready to come out? December, January, and February are always the slower months of the year and we are beginning to see some improvements for March.
In analyzing data over data, I’ve come to a few obvious conclusions. Listings continue to increase and our sales have decreased. This will increase the MSI (monthly supply of inventory) making the shift to a Buyers market. If we are following the trend from mid last year toward the end of last year, we are doing it all wrong. Those appreciation numbers are gone for now, and I believe that is a positive move to a more healthy market. It’s far to easy to look at comps and assume that the home will quickly sell for top dollar. Remember, the market is adjusting and now is the time to be more competitive on your price rather than being forced to inch down on your price every month, ultimately leaving you with less than what you could have received.
Bottom line, days on market are increasing if Sellers and Agents do not make quick adjustments to asking prices. Price your home right, immediately from day one. Week one is when you attract most buyers. Buyers, the ball is in your court. Plenty of homes to see, good negotiating power, and great rates.