Monday, March 27, 2023

Isn’t it ironic to relay that in the midst of inflation, threats of recession and escalating mortgage rates, my last sale realized three competing aggressive, qualified offers un til the ultimate decision was made by the seller of the carefully chosen buyer. Yes, you wonder why and how it elicited the fierce competition at this time, yet in reality the market is still bearing multi-offers from aggressive buyers to purchase now. Will the landscape change? Real estate interest, value and markets can be in a state of flux during all scenarios with supply and demand always a contributing factor.

It’s important to intelligently review the facts and percentages of change. The monthly snapshot provided by the New Jersey Multiple Listing Service indicates a one-year change in closed sales of all properties, down by 23.6%, while the one-year change in homes for sale plunged even further, down 31.8%, with the backdrop of an increase of the median sale price on all properties, up 6.0%, which could be good news or bad depending on whether you are the buyer or seller.

Existing home sales declined nationwide for the eighth consecutive month, according to the National Association of Realtors. Keep in mind it is projected that high inflation and soaring borrowing costs will predictably erode buyer purchasing power, causing the market to cool rapidly in time. The monthly indicators for the U.S. housing market are undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates did double since March, yet home prices remain elevated due to a limited supply of homes for sale. To sum it up, many homeowners are waiting until market conditions improve to sell their home, while other sellers are left with no choice but to cut prices and offer concessions to attract a greater pool of buyers.

And, yet, full circle, my listing for sale recently acknowledged multi-offers and a bidding war for the seller to choose the buyer wisely, with the caveat of the buyer agreeing to waive a shortfall should it occur from the appraisal results. This particular offer included a buyer concession request, which was added onto the price for mortgage qualification. So, go figure...Logic never wins! With all the downside variables, the seller triumphed. So, my advice is to go for it! Against all odds! It can always get worse, or better? Good luck!

Ruby Kaplan is a realtor licensed in both New Jersey and New York. Visit http://rubykaplan.exprealty.com/ for more information. The Ruby and Bobby Kaplan team/EXP REALTY will promote your home with the best of social media and create alerts for your criteria of housing needs. Your housing needs are our priority! Ruby can be reached at 201-314-4152, on her cell at 917-576-4177 or at [email protected]

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