It’s late August right now and generally that means the market is quiet as people are on vacation or gearing up to get the kiddies back to school. This is supposed to be a safe space for the real estate market. One where you can normally find a good deal as a buyer.
*2016 breaks through the wall like the Kool-Aid man*
2016: “OH YEAH!!!! Wait…I think I’m in the wrong place. Sorry about that. Carry on…”
For anyone that remembers the Kool-Aid man he would come in to save the day by providing everyone with some refreshing sugar water. He would help cool the summer heat.
But, unfortunately for many, there is no disturbing anthropomorphic character to slow down our uncharacteristically late August summer heat.
Even More Multiple Offers Than Usual
I recently pulled up some listings for a client that asked me to filter for ones that weren’t holding back offers. Of the twenty that I pulled up, four of them weren’t holding offers. In late August. I keep having to repeat that because it’s so incredible.
Of those four, two of them hadn’t been updated to reflect they were sold, one was about $40K over priced and the other was an outdated and small bungalow that needed quite a bit of work and probably had an issue that needed to be disclosed by the state it looked to be in.
The client was adamant that they didn’t want to be in multiple offers. I totally understand the sentiment and let him know about his options. Let’s just say he was less than pleased, but unfortunately that is the state of the market right now. It is EXTREMELY competitive for any type of freehold home. Even condo townhomes with fairly large condo fees are selling like hotcakes. The only option that remains balanced is the condo market but even the best locations and best opportunities need to be jumped on quickly.
How do I Buy a Home in this Market?
I don’t sugarcoat things with my clients. It’s really, really tough to buy a home in this market if you’re not 100% fully committed to the process. If you want to just browse, see what’s out there, dabble a bit, get your feet wet and “see” if your lowball offer will win you’re going to waste a lot of time and physical/emotional energy.
There is a process to buying a home in an extremely competitive market but it will take all of your attention and your patience. And it will also take a great realtor who can guide you through that process and one who understands how this market works right now.
What Will Happen This Fall?
More of the same. It’s an extreme seller’s market and things will not change in the foreseeable future. This year we aren’t seeing the typical real estate sales cycle where things are hot in the spring and fall and then cool off a bit in the winter and summer. Instead, price-wise, we’ve continued to climb all summer and likely into the fall.
So, for anyone that was waiting for the fall or winter to get a better deal than in the spring, that doesn’t look like it’s going to happen this year. Instead of the summer and winter giving us the leftover inventory, what we’re seeing is the same quality of inventory from the spring but just much less of it. Perhaps there is some hope that the increase in inventory expected in the fall will help at least settle things for a few months, but at this point there is no guarantee.
My advice? If you have a tight budget right now, get yourselves ready to buy this fall or you might see that budget crushed when the sold figures come in the next day after that heated multiple offer in the area you want to buy.