Lots of people are talking about how prices are lowering. In my opinion, they just went up fraudulently, but why do I think that? Let me tell you a story about two nearly identical homes in our market.
House A and House B had the same floor plan, lot size, and location—they were right next to each other. Both even had finished basements! Just to make it clear, this is an actual case study.
Back in February, the owners of House A put it on the market when interest rates were low, supply was nearly all gone, and demand was off the charts. They listed it at $649,000, the highest price in the neighborhood at the time, and sold within a day or two with 15 offers. One buyer paid all cash and offered $725,000 because there was no other home they wanted on the market.
Let’s fast forward. In July, when interest rates had climbed, the owners of House B put it on the market for $649,000. It sold for list price in about a week with three different offers. That should still put a smile on anyone’s face because $649,000 remains a fantastic price for that neighborhood.
The difference between February and now is there’s no mass hysteria in the market. You don’t get that one buyer who’s willing to make a crazy deal to get the home. Inventory has risen, and demand has waned.
It will look to some like prices are decreasing in these situations, but they aren’t. Those crazy offers were made when there were no homes available—that’s not normal.
Whether you’re planning to buy or sell, my team and I are here to help you get the right information. If you have any questions, call us at (770) 634-9710. I promise you won’t be sorry you did.