Seriously, so many people are shaking their heads at this market. Sellers are boggled that well-priced homes are not flying off the shelves (they're selling, but surprisingly slower than expected), Buyers are flummoxed that prices aren't crashing, interest rates are still nearly triple the past 5-year low, and even while inventory is rising, prices aren't plummeting.
That's because when you think about it, nothing has really changed in the past 24 months. Interest rates are still high, most Sellers are NOT unleashing since they are happy in their post-COVID homes and even happier with the 2.8% mortgage rate, and inventory is still historically very low. We've been in a weird market where neither side needs to or wants to budge.
But one thing is for sure, right now, Buyers have more of an upper hand than Sellers because they can offer less, or just walk away. Sellers are at the mercy of buyers (unless it's a hot property) and are often willing to negotiate. A recent buyer I represented got their escrow fees paid by the Seller--that was about 10K that the Seller just agreed to pay to get the deal done. Not possible 3 years ago.
And right now, Landlords are gaining the upper hand too. Rents are climbing, the cost of living is climbing, and renters either have to downgrade their place to match the rents they want or pay the annual rent increases where they currently are.
Renters always forget that they don't have a 30-year fixed rent, they have a 12-month fixed rent and that's pretty destabilizing in my opinion. This is another reason why I'm seeing more couples and roommates shacking up to offset costs. Why pay $2500/mo each for a mediocre apartment when you can pay $2000/mo each for a much nicer $4000/mo 2 bedroom in a nicer building and possibly better area?
So what to do? If you're a Seller, price it right and sell so you can use your funds to do what you want to do. Otherwise, hold until the market goes up, because it always does. If you're a Buyer, buy now while things are negotiable. Remember, the mortgage rates can drop and you can always refinance, but the price is the price. Landlords, hold on to those precious rentals, especially in prime buildings and ones in which you have good Renters. Renters, you should consider buying if you're sick of rents increasing each year, and start gaining some equity which equals wealth.
