by Nick Motsis (Realtor/Owner)
Over the last 2 years you have probably heard from friends and family that the real estate market is currently going through a shortage that is unprecedented. Unless you have seen the line of people outside an open house or have experienced what it’s like first hand to be a buyer in this market, its simply not possible to truly grasp the reality. We have seen measures taken by buyers that are new to the industry or were rarely executed in previous markets. Home inspections have become scarce, multiple offers with an attached escalation clause have become common practice, buyers are covering appraisal shortages, writing love letters to sellers and doing anything else they can do to stand out above the rest. I’m asked almost daily why the market is the way it is. The answer is actually quiet simple. The demand is far exceeding the supply…duh Nick but why!? Well, from what I have commonly seen, sellers are living in homes that they know are not right for them anymore, staying put because they are afraid they won’t be able to find another place to go, or don’t want to contend in such a competitive market. These are totally understandable concerns, but are exactly what is causing chaos. The market needs the natural progression from sellers to move on from homes as their financial situations improve or homes no longer fit their needs. The entry level price point is especially competitive with sellers staying in their starter homes longer, vastly limiting the markets’ supply. The result is 60 groups, through a 2 day open house, with 6-12+ offers on Monday and a final price $50-$100k+ over list price. Buyers are tired and they just want the dream of home ownership so badly, that they will do whatever it takes. In addition to younger buyers staying put, empty nesters have been slow to capitalize on what may be a once in a lifetime opportunity. Sellers are living in the large 3-4 bedroom homes that our second and third time buyers are looking for, as they start families and outgrow their current homes. If the inventory increased in that price point, it would encourage our previously mentioned seller to sell their starter home and move on to more suitable, longer term options, vastly improving our inventory levels in turn. But how can you sell and buy at the same time right now? The good news is that it’s 100% achievable! But it requires a STRONG plan, a Realtor you can easily communicate with and one that has the necessary skills and resources. I was thrilled with the success rate my clients and I had in 2021, navigating the market and buying and selling simultaneously. Bottom line is that with the right information, anything is achievable, even in this market. While every call to a client isn’t the happy news we both hope for, I’m proud of the amount of happy calls I have been able to make over the last 24 months, in a market we may never see again. Follow the inventory and check out those interest rates. Both will effect our market on an almost weekly basis. And reach out to me for all your real estate needs. I’m a resource to you and to those you care about most. I don’t take that responsibility lightly. I look forward to our next encounter!