Local Real Estate Market is Changing Rapidly
Posted October 25, 2022 in Real Estate Trends
Rising interest rates are having a huge effect on our local real estate market. There’s been a shift from a solid seller’s market to one where buyers may find value if a seller is motivated and the buyer can tolerate the fact that interest rates have increased this year from 3% to 7%.
Right now, the local real estate market features a higher average “days on market” (DOM)—that is, how long a newly-listed property sits before it’s sold. There are fewer new listings, more price reductions and more buyer demands for repairs after inspection. In other words, sellers have less negotiation leverage than they had in the first half of this year, while buyers are emboldened to ask for more concessions.
The trickiness in a changing market like today’s is that, contrary to some people acting like a light switch has been flipped from “seller’s market” to “buyer’s market,” the truth lies somewhere in between. It all depends on the desirability of the property, pricing based on up-to-the-minute comparable sales, and whether a seller can afford to turn away a buyer whose offer is below the asking price or wants everything on the inspection report to be fixed.
Adjusting to changes in the market takes some finesse. Yes, you could offer $100,000 less than asking price to see if the seller will hand you a bargain, but that blunt tactic could be used in any market with varying degrees of success. A more nuanced approach would be to use professional Realtors who have an idea of how far to go in crafting an offer or counter-offer. Use the expertise of Realtors who negotiate purchase and sale agreements for a living. If you don’t know any Realtors, call us and we’ll direct you to one of the many professionals we are blessed to work with, and they’ll be happy to answer any questions.
The role of the title company in the transaction is to make sure that everything is correct in transferring title from seller to buyer—correct in both documentation and handling the funds. That’s the secret to our success for over 40 years: our experienced title and escrow professionals that can be trusted to get it right. We take pride in our motto of “Service is the Difference.” Next time you are buying or selling real estate, call or email, and let your Realtor know you want to use the hometown title company! Clark County Title wants to be part of your real estate team!
From your friends at Clark County Title,