With more than 48 states reporting improving home price, the housing market recovery is well on it’s way. But the recent rise of interest rates have removed significant number of buyers to the sidelines since affordability has become a huge issues.
In our market this decline in number of buyers have created more challenge for home sellers to price their home right or face a challenging marketing campaign. So, one strong suggestion we for home sellers is that is: Don’t over-price your home!
Part of the reason why pricing your home has now become critical than before is the recent rise of interest rates have slowed the price increase of home dramatically in the past few moths. In April CoreLogic reported that home prices actually depreciated by .08% this month as compared to last month’s report. The way we view the current market condition is that very few buyers have the appetite to over-pay for a home and they would rather move on to another property if yours is over-priced.
Another factor that makes you pricing critical is the slow down of home appreciation where cash investors have already exited the real estate market. This in turns means that your home is not going to get 15-20 offers that it was in 2012-2103.
Despite the market being ripe for a well-priced home, some sellers will surely over-price their home and will be chasing the market. To avoid such a fate, you might want to get guidance from a real estate professional in your marketplace.