Back to the Future?

It’s been awhile since my last real estate blog and I apologize for that. I’ve been real busy providing emotional support to a host of people (some of them other real estate agents!) who have not gotten the memo when it comes to our local real estate market here in the Upstate. In the course of consulting with homeowners considering selling, I’m finding quite a few who are thinking back to the good old days of 2021 2023 a little too fondly. You remember back then, right? Multiple offers, no inspections, cash buyers from the North paying $50,000 over the asking price, etc., etc. Ah, the good old days. But were they really?

I tend to think about that time like a long drinking binge and now we find ourselves in the early stages of one heck of a hangover. The question is, how bad is it going to get and how long is it going to last. You might remember that the fuel for that binge was incredibly low mortgage interest rates, combined with (and some would say caused by) COVID and the government’s wild stimulus programs.

That was bad enough, but there was also a big shortage of existing homes for sale back then. Now pour in a huge influx of buyers from NY, NJ, CA, and TX with pockets full of cash from the sale of much more expensive homes they sold before arriving here. This amounted to a wave, a Tsunami actually which lifted home prices here to unprecedented heights. Unfortunately, parties end, waves recede and reality starts to set in.

In the past 6 -9 months a few things have become clear.

Interest rates ain’t going back to anywhere near those Covid levels, and there’s a good argument for mortgage rates drifting higher whether the Fed cuts rates or not. If this is confusing to you, email, text or call me and I’ll be happy to explain why this is likely the case.

With existing home prices here still firm, demand from first time home buyers has fallen sharply along with the age of first timers screaming higher. Why? Simple, they can’t afford a home at these prices and interest rates on what they make, not without Mom or Dad putting up a chunk of money.

Inventory is way up, both that of existing homes, and new builds. Existing home prices are under increasing pressure because homeowners are not willing, or able really, to hand out the concessions that new construction builders readily do.

Where are we now and where is it all heading?

Days on Market on average are about 60 and 30-35 percent of listings here on the MLS have had at least one price reduction. With all that said, even though sellers are seeing less than they expected in some cases, it hasn’t been a lot less. There are also some developments and areas where demand has stayed strong despite all the headwinds. Location, location, location is a thing. So far, we’ve been very lucky compared to other markets that super-heated during the Covid period, and are in full decline, scary decline in some cases.

While we don’t face that, we are definitely in a challenging and shifting real estate market here in the Upstate. Some could argue we’ve already moved to a buyers market. I’m not quite ready to concede that, but it’s true that buyers are demanding more for their dollar and can sense the changing winds.

Many of my readers know that I work almost exclusively with sellers. It has never been more important for a realtor to assist their client in determining where to start. I strive for Goldilocks pricing. Not too hot, not too cold…just right.

As always, every property is unique, every seller has different goals and motivations. Condition and finishes matter. One size never fits all in the real estate market. With the future uncertain, its never been more important to pick an agent that can see the shifting sands and interpret them correctly. Some agents might tell you anything you want to hear, but I believe my job is to tell you how things are, even if you don’t want to hear it. Then you can decide.

This is why my previous clients often say…

You better call Sal.

Until next time,

Sal Busacca
Realtor
Keller Williams Greenville Central and
Dunrovin Properties SC
Mail: bettercallsal@kw.com
Website: www.dunrovinpropertiessc.com
Phone: 864 952-7251