However, homeowners are still refraining from listing their homes, said Jeff Tucker, senior economist at Zillow. He said the inventory of homes for sale has skyrocketed this spring, but it’s more about the withdrawal of buyers than the flood of new homes on the market.
“Sellers don’t seem to be particularly motivated by these highs, or to list homes for quick sales in April and May to get high premiums,” Tucker said. It’s even the best time. ”
He said the main reason homeowners aren’t flocking to the market to earn cash is simply because they still need a place to live. “They are pretty reasonably worried that they might have to pay a lot of money to make another place better or better.”
Tracy Murray Kupferberg, an agent at Douglas Elliman in Long Island, New York, said many potential sellers are waiting for the right time for a strike.
“Many people are saying,’Am I making a mistake waiting because I’ll never get the price of that dream again?’ There is this fear that they may miss the peak.” Said Kupferberg.
But there is reason to believe that the peak may be now.
Signs of a cold market
It’s not possible to time the market exactly, but many analysts expect home prices to peak this quarter.
“The pace of price increases is likely to peak sometime this quarter, either April, May or June,” Tucker said. “It will be the highest level of appreciation’s annual pace, and it will slow down.”
In addition, according to the National Association of Real Estate Agents, pending home sales have declined for the fifth straight month, and new single-family home sales have also declined. This means that fewer people are willing or able to buy. Also, according to Realtor.com, the share of reduced listed homes has increased over the past two months.
According to real estate data firm Atom, average profits from selling mid-priced single-family homes fell in the first quarter. Profit margins often decline in late winter, but recent declines show a decline in the first quarter since the fourth quarter of 2019, the largest since the first quarter of 2011.
“Some sellers have been really successful in the last two years,” Kupferberg said. “Some buyers did that too. It was win-win because prices were rising and mortgage rates were very low at the time. Now it’s not.”
She said sellers could often take some time to readjust after market changes, but still expect their homes to sell in a few days in a manic bidding war.
“The price will be the highest,” she said. “Then it takes a while for sellers to realize they have to lower their prices. The cost of renting has increased, so this pool of buyers can’t afford to buy a house.”
Need quick sales
Lotte Bonk was worried about selling his home, mainly because he didn’t know where his family would go.
Vonck knew that when his second child arrived a few months later, the space in his town home on the outskirts of Chicago would be reduced. However, she couldn’t find many homes in the market that seemed appropriate, and home prices and mortgage rates continued to rise. Still, she knew that if she and her husband didn’t sell right away, like many potential sellers, they would miss out on getting the best price on their home. rice field.
“We were very aware of the rise in interest rates,” she said. “We thought we should sell this house and buy it now or renovate it so that we can stay.”
They were considering expanding a three-bedroom townhouse to live with toddlers, dogs and cats, but were still looking at the new list on the market.
Earlier this month, they found the perfect five-bedroom home in the nearby suburbs. Once their bids were accepted, they competed to bring their homes to market in a week. The offer to buy a new home was conditional on selling their current home by mid-May, as they couldn’t afford to carry both homes.
They listed their home for $ 315,000 last week and have already seen it more than 20 times, but there are no feasible offers.
“Everything I know about the market told me that the house should be flying off the shelves,” Fonck said. “When things aren’t selling, it’s either a price or a product. It was an intestinal rehab a few years ago, I know it’s not a product, so it has to be a price. . “
They are trying to lower prices and see if it brings buyers in time.
“I don’t want to lose to my favorite house,” Fonck said. However, she added that she was willing to sell the home at a price slightly lower than her dream price so that she could buy the next home.
I’ll leave it for now
When Long Island agent Kupferberg recently visited a potential seller’s home, she told the owner that it would sell fast, even with a little work.
A three-story house with five bedrooms, a pool and a tennis court was too many to manage Empty Nest Syndrome.
Still, the couple was at a loss as to whether to sell or leave.
“They don’t want to miss Mark, they know their home will sell quickly,” he said. “But where would they live if they made the leap now?”
Kupferberg said there was no easy answer. Many of her prospects are homeowners who own large homes and want to be smaller, but enough to go to the same doctor near grown-up children and grandchildren with churches and synagogues. I want to stay in the distance. There are not many options.
“I don’t know what to say to someone who wants to sell but has nowhere to go,” she said. “Unless they have another home or relatives with them, they can profit from what we see at the end of the sales market.”
Kupferberg said this particular couple was looking for a one-story home in a vibrant, upscale gated community, but had few options and wasn’t immediately appealing.
“Nothing really meets their needs,” she said. “They are left behind for now because they have nowhere to go if they sell.”