More Buyers Jump into Market with Homes to Sell

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More Buyers Jump into Market But with Homes to Sell

Alice Lema: [00:00:00] Well, good morning, Real Estate fans, Alice Lema, Broker John L Scott. Then another addition of the weekly podcast. Today we're gonna talk about a phenomena that we haven't seen for a while. We're watching many buyers jump in unexpectedly because they found the house of their dreams, but they also have a house to sell.

But you know what, you know why it's noteworthy, the sellers are going for it. Sellers are accepting these contingent offers. So we're gonna talk about the contingent offer and this new development happening even as we speak. Okay? So before we jump to that, I wanna give you a quick second to subscribe to the channel. Give us a like, a comment, a question, share with your friends. If you wanna talk to me personally privately, floating up here somewhere is my number (541) 301-7980. Just gimme a call or a text. Okay, So now let's go to the podcast.

Unexpected buyers jumping into market, but they have houses to sell. The sellers are going for it. What a phenomena. So it's been 10 days or so, I've started noticing, and it's not just me, it's a lot of [00:01:00] other agents. What's happening is as a side effect of the market, softening, normalizing. We have more people putting their homes on the market. People who are not planning on moving see those houses.

It's the house they've always wanted in their whole life. And they call me up and they say, write an offer on that house. I'm getting my house on the market as soon as you can take pictures and we're moving. But if I don't get that house, I'm not moving. So this is what I was waiting for. It's kind of the beginning of the market trying to normalize.

We used to see a lot of this before Covid, like 2018. 2019. People were more comfortable with it. But well, and also in down markets, sellers are more likely to take a contingent offer, but our market's been pretty strong for several years. So while I was waiting for this to happen, you had to have certain market elements in place, like more inventory.

So it's very interesting that in the last two weeks we have a lot more contracts [00:02:00] being made with buyers and sellers. But there's a house to sell and it just means that the sellers are adjusting to the market changes just like the buyers are. The buyers had to adjust to market changes of interest rates and all the world volatility the sellers have to too.

And so now, People are giving each other a little more time because they can, and it's not for everybody. These contingent offers are not for everybody. But one of the ways you can help both sides is by using this MLS status called active contingency. And that means that the listing is still going through the IDX feed, like a fire hose going out to all the websites like mine and John Scott and Zillow and all those people.

It says that there's a contingency, so that means there's probably an offer, but with three to five days notice, another buyer could jump in and just displace that first person. So it just creates a little bit of time and safety for both parties. And it allows somebody to be in [00:03:00] escrow as a buyer and have a target address. And it allows the seller to be in contract with a, a real buyer.

They just need a little bit of time. So I'm super excited to point out that people are getting way more comfortable with this. Wanna run the days on market because part of what's happening is as the days on market go longer, then more of this contingent strategy happens because it can, there's space.

And also I wanna talk about the buyer profile a little bit. Cause there's some, what I call info snack, kind of pieces of data that I wanna share with you. But here in Jackson County, we have an average days on market 47 days. Now remember, a normal market is 120 to 180. That's four to six months, a little tangent. I personally don't think anybody's house should take more than 60 to 90 days to sell even in a down market. But that's a different podcast, . But the statistics are that a normal market is four to six months, and right now Jackson County [00:04:00] is up to 47 days. We haven't seen that long of a time for a while, but it's still considered on the seller market side and that's kind of how it feels out there. We still have a few more buyers than sellers.

So Jackson County Days on Market 47, Josephine County, 53. That's almost two months. And Klamath Falls 46. Yeah. Klamath is like the new and up and coming county to to buy in for both residential owner occupied folks and also investors. So our days in market are slowly ticking up, and that's part of another validation.

The market is a little slower, but there's still plenty of opportunity. Another info, info snack, 45% of the buyers out there right now are first time home buyers, 45%. Now, that's the category buyer that's most susceptible to the interest rate change. And they're still out there. 45% of the buyers, according to a report by Zillow right now, are first time home buyers. [00:05:00] We haven't seen that since 2019.

I've got a chart here from Zillow. Additionally the National Association Realtors did a study on age bracket of who's buying and right now, The 18 year old to 29 year old, that's pretty young, right? 18 to 29 make up 17% of the purchases. Right now, 18 to 29 year olds are 17% of our purchase market. Ages 30 to 39 are 26% and ages.

40 to 49 or 23%. So you add all that up, that's way over 50% are between the ages of 18 and 49. Those are the younger folks. Now, us older folks ages 50 to 59 only make up 12%. Probably cuz we hate moving . And ages 60 and up are 23%. So it used to be in the old days that a lot of the kids coming into the housing market would buy from [00:06:00] the older folks that were downsizing.

The downsizing isn't happening much anymore and there's a lot of reasons for that. Some of them are sociological, some of 'em are financial, and some have just have been opportunity. But so that's another reason the housing market in the last five or 10 years has been hard.

Well, also, you know, the covid really did a, did a number on our housing market. But when you look at the age brackets that the National Association of Realtor is documenting 17%, 18 year olds to 29 year olds, 26%, 30 to 39 year olds, and 23%, 40 to 49 year olds. That's an incredible amount of purchases from the youngers, and I was surprised to see that,. Cuz I always think it's the olders that are out there doing the purchases because they're less susceptible to economic changes, interest rates and, and things like that.

Plus, older people frequently have other assets that they're selling or dissolving, so they just have more money [00:07:00] in their life to do purchases regardless of market condition. So there's a couple of info snacks for you. 45% of buyers, right? According to Zillow, are first time home buyers and 17% of today's buyers are 18 to 29.

I just find that fascinating and we have more contingent offers being accepted. So lots and lots happening this week. Super excited and we'll stay in touch every week and let you know how we're doing. If you wanna chat with me talk about listing your house or doing some kind of a purchase, give me jingle. Give me a text. 541-301-7980. Otherwise, hug the ones you love. Have a great weekend. See you next time.