Well…although the crazy train may have left the station, the real estate market is still holding its steam. Since the start of Covid in Q2 of 2020, there has been NOTHING predictable – or even sensical in many instances – in the housing market. We’ve had summers that are typically slow having houses with 20+ showings in a day, we’ve had December holidays with offers going in on December 24th and virtual open houses on December 26th. But, even with all of this, the story of the market has been the outrageous bidding wars that were leaving sellers in awe and many buyers extremely discouraged.
There has been great speculation and debate as to how long the increases could possibly continue and what would happen when the peak was reached. A rapid rise and frenzy in the market occurred for a period of time in 2017. In that instance, there was a very sharp and abrupt decline in the housing prices and an increased length of time on the market that had many holding multiple houses and/or bridging the cash differential between bought and sold.
For us currently, it seems that the peak of all of the frenzy was in March, 2021 with very subtle cooling after that. The data from Q2 shows that it is only a slow cooling and that housing prices are holding, but without the consistent bidding wars that were being seen and were creating a lot of the chaos and frustration for buyers. With that said, there are still pockets that are getting the bidding and going well above asking price, and so it will be very important to have a real estate agent that is watching the specifics and subtle trends for your street/house-type so that you’re not underpricing trying to get a war going or that your house doesn’t end up sitting where 13 days on the market currently creates a ‘stigma’.