Tuesday, April 09, 2019 / by Andy Mandel
What’s really going on in the market? It’s not a crash, but there’s definitely a shift occurring.
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Though you may be hearing from various news outlets and other sources that the market is crashing, it’s simply not true. Negative headlines attract more attention than positive ones, so it’s easy for the media to skew the truth.
However, it’s true that there are some changes occurring in our Coral Springs market.
For single-family homes, we saw 8% more listings in 2018 compared to 2017. This is the first increase we’ve seen in the last five years. At the same time, we had 3% fewer sales. If you look at supply and demand, the combination of more homes on the market and fewer home sales creates downward pressure on the market.
At the beginning of 2018, people were fearing a market crash due to unsustainable growth in pricing. Now that we’re into 2019, we can see that things have fixed themselves. Buyers have more inventory to choose from, but sellers need to begin pricing competitively. You can’t just price your home wherever you want anymore.
To sell your home this year, it needs to be “PTSI”—priced to sell instantly. Look at the market and price where previous sales were; it’s the best way to get buyers in the door. If you add $20,000 of “negotiation room” to your price, your home is going to sit on the market for a while.
Again, the market is not crashing. We’re simply experiencing a more normal market, which means things are just taking a little longer to sell. I don’t believe we’ll be seeing the same 6% to 8% annual price growth we’ve become used to in the past. Home price appreciation will likely be closer to around 3%, which is still a good rate of increase.
If you want to buy or sell a home, have any questions, or would like more information, feel free to reach out to me. I look forward to hearing from you soon.