From the end of 2021 to the beginning of 2022, DC’s real estate market ignited, with great advantages for sellers who sold far more homes than listed. But now there are signs that the market is settling down.
From the end of 2021 to the first half of 2022, the DC real estate market ignited, with great advantages for sellers who sold far more homes than listed. However, according to one real estate executive, there are now signs that the market may be regaining calm.
Corey Barr, Senior Vice President of the Company, said: TTR Sotheby’s International Realty.
Mr Barr said the war in Ukraine is affecting the changes seen as interest rates rise, and buyers and sellers are adapting to the “new market reality.”
At the peak of things, the bar said it was not uncommon for sellers to choose from a large number of offers. But that’s not always the case.
“Usually we could have seen 4-10 offers on some properties. And now we’re probably only looking at one or three, but the offers are still very strong.” Bar said.
Another sign that things are getting a little slower is more property cuts from list prices, more properties remaining in the market after the first week, and more properties not selling until the second or third week.
Also, in many cases, previous award-winning offers did not have a string for the seller. The buyer brought a lot of cash to the table, agreed not to inspect the house, and was forced to fight for the house by not asking the seller to do something to repair. Now more buyers can return some contingencies to the offer.
“You’ll feel better not having to track the escalation clause, as it was in the last 18 months,” Burr said.
To the seller, Mr. Barr said the market would look “dead” and could run out of days 30% above the asking price, but that would leave them no more sells. He pointed out that it didn’t make sense. More money than they asked for.
“Therefore, once they are on the list, they understand that it may be a bit bumpy or a way to reach the final ratified contract, and they, for example, with the contingency of financing. It may be necessary to accept the contingency of the assessment and the contingency of the test. “There will still be successful sales,” Barr said.
Barr said the recent peak market is unsustainable and feels like what we saw in the 2007 housing bubble due to the lack of equality between sellers and buyers. At the same time, he said he does not think cooling is a precursor to the housing bubble 2.0.
“This market looks good. If it’s not just a seller’s market, I think it’s more sustainable,” Barr said.
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