Market Chaos - Tips for Buyers and Sellers

Video Table of Contents

00:14 🏡 Buyers and sellers can capitalize on current chaos in the housing market by considering if their current home is their last, amidst high interest rates and inflation.

01:48 💰 Despite increased inventory, demand still outstrips supply, so prices won't decrease significantly, offering buyers more choices but limited negotiation power.

04:10 📉 Buying a house meeting 75-85% of criteria now could be smart, as prices may rise when interest rates decrease in the future. 05:18 🏞️ Sellers in Southern Oregon have the advantage of high demand and relatively low inventory, but overpricing can deter buyers and prolong the selling process.

07:23 🏠 Sellers should heed feedback from showings to make cost-effective improvements before adjusting the price, maintaining competitiveness in the market. 08:55 🔄 Selling to downsize? Consider unconventional methods like bridge loans or equity lines in this chaotic market to optimize your transition.
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Market Chaos - Tips for Buyers and Sellers

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Todays Chaos 6 Tips

Alice Lema: [00:00:00] Well, hey, real estate fans, welcome back to the podcast. I'm Alice Lema broker at John L. Scott real estate in beautiful Southern Oregon. And today we're going to talk about how buyers and sellers can actually capitalize on the chaos that we're experiencing, not only in the housing market, but in the world.

And it's by asking the question, is this the last house you're going to live in? So ponder that. Because that question right there, whether you're selling or buying brings it down to a long term reality for you. And a lot of people don't ask that question. So the reason we're bringing this up right now is because the interest rates right now are at 7.66% So that's still considered high. I know a lot of us older folks remember when it was way higher, but this is the new reality. The 7. 66 and people just have to deal with it and it's changing. We also have ever stubborn [00:01:00] inflation and crazy world events. So that leaves both buyers and sellers just reeling from all the chaos. But with chaos comes opportunity, but it's bumpy and it's messy.

And buying and selling houses, even the best of circumstances is stressful, but now we have all these other outside elements, creating more stress and trauma and drama. But I want you to take heart because there really, there really is opportunity if you can stomach it. But we want to rely on our facts and our data to make our good decisions.

So here, I want to give you some, some data points. Inventory is up over this time last year, but it's still not enough to address our buyers needs. Last year, Zillow, last fall, Zillow did a survey and discovered that 23 percent of homeowners in the United States were planning on selling their home [00:02:00] or at least listing it.

They were considering it in the next three years, 23% of homeowners in America. So we would be about halfway through that. So about two and a half years, 23%, I think that's a lot. That's almost a quarter. So where does that play in, in the rest of what's going on in the housing market?

So for buyers, here's, here's your opportunity. You've got more choices for homes right now because inventory is up. But there's, because there's still not enough to meet the demand, the prices are not going to go down very much, if at all, we're kind of bottoming out at least in Southern Oregon, but you do have more choices. And because the interest rates are high, you'll have a little less competition from other buyers. So you'll get longer to think about it than we used to. And you also will perhaps have some more negotiating opportunity with the sellers. Now the ongoing low inventory does create kind of a bottom for prices. [00:03:00] So I encourage you not to over negotiate. In some neighborhoods, the prices have already started to creep up a little bit.

So be super careful buyers when you're writing your offers and when you're out shopping and you're thinking about it, it doesn't hurt to write a low offer, especially if it's been on the market for a while or it came back on market. But I just want to give you A caution because the market's not as bad as some people think it is.

If you plan on moving in the next three to 10 years, considering, consider buyers getting a home that meets like 85, 75 to 85 percent of the boxes. Because the idea is that the prices are a little bit lower right now, and when the interest rates go down, the prices could go up. It'll take a little time, but that's the teeter totter.

So getting a house now in this higher inventory rate is super smart. [00:04:00] You won't have as many buyers to compete with. You just got to rein in your criteria a little bit. And I, I think that is, is going to be a good strategy and then you could just settle into your new home and wait for the market to change.

Cause it always does right ask any older person. It's like, we've gone through this so many times, the ebb and flow, the different cycles. But there is a real advantage. If you've got the stomach to get through all this chaos and all the weirdness get a home. Plus you get to live in a home. If you're renting, then that's going to be really amazing.

And if you're going to a different home, it's going to be nice because at some point the interest rates could go down and then you can refinance and then you got the best of both a low price, and a lower interest rate. But you also got a home and you got to, you got to grab all that equity and in Southern Oregon we do have a reasonable amount of equity because remember, everybody wants to live here. We're a lifestyle [00:05:00] destination.

Sellers, we're at that magical place where we still have higher demand, not as high as it was. And we still have lower inventory, but not as low as it was, but we still have that magical moment, but you've got to be really careful not to overprice your house, which everybody does, especially early in the season, but I just wanted to throw a caution out for that. You have an opportunity to kind of dial in a buyer that has really worked hard to get through this market. They're super well qualified. We don't have people out there that are not qualified right now because the standards are high. The interest rates are high. You have to be a stronger buyer to get through this.

And you yourself as a seller could get this asset sold and you can get on with the rest of your life, whatever that looks like. And the other thing that happens when you overpriced, the buyers hesitate more because they'll go see your house, but they're going to stand back and wait and see if you drop the [00:06:00] price.

They might want to write an offer, but they're nervous that the interest rates might go down. You know, people still think the rates are going to go down. I watch it every week. I wish the federal reserve bank would stop talking about it. But you got to know that these different gyrations of the market are causing the buyers to hesitate. And if you're overpricing your house, you're just adding to it. But I know everybody does it. I've been a seller too. I know I did it. And then I changed it because I knew I was wrong. But some, some of us just have to try it. So I totally get it.

The other thing is if you're not getting enough showings or offers to get you moved on to the next step sellers, then really take the feedback from the showings you have had, or the open houses you have had, take the feedback seriously. And it's not always about price. Sometimes there's some little thing you can do the house or the yard that would be less expensive than doing a price change, or at least do that first.

Okay. So think about that. Sellers [00:07:00] don't discount what people are saying. And I don't know why sellers do that. A lot of agents take a lot of time and trouble to get feedback. And sometimes we have to chase down those other agents to get them to tell us something. And we do. And then we report it back to you.

So please listen. You don't have to, take it to heart immediately. But if you start getting two, three, six of the same ballpark comments, then, then be a little reflective and do something to the house or to the yard to bring it up. And then, you know, price does cure a lot of ills, as they say, you can always change the price later.

But this is here we are almost the end of April. So, you know, our spring selling season is usually pretty robust. So keep that in mind. It does kind of go down a little bit in the end of the summer, if you're in Southern Oregon.

And then number three, if you're selling to downsize, keep in mind, you could have a lot of equity or a big down payment so that your [00:08:00] new mortgage, even at a higher interest rate might not be that bad. And also you could consider a bridge loan or an equity line of credit, and then just you know, leapfrog into buying the house you want first moving into that and then selling to a little backwards. But this kind of market with everything weird and chaotic, why not do something backwards? It could end up working great for you.

So those are my six ideas for buyers and sellers to take advantage of the chaos right now, but does take some fortitude to get through things right now, but they are buying homes and selling homes and making people happy with their new life.

So I want to be your agent. I work hard. I'm great with listings. Great with buyers. Great with real property. And if you just, you know, want an investment or you want a little starter home, great with that too. Okay. Also do mobile homes. We have a lot of seniors downsizing into mobile homes. I'll take care of that too. So give me a call. Give me a text [00:09:00] 541-301-7980.

Let's talk about what we're doing with the next step of your real estate life. And if you haven't subscribed to the podcast, please subscribe. Love those. Tell your friends and family, have a great weekend. See you next time. Bye now.

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