Last year we saw a record amount of all cash buyers and that helped properties appreciate faster than ever. The stock market boom left buyers flush with cash, and low interest rates made homes affordable even though prices were climbing.
Recently, we have seen an abrupt pivot that is affecting all aspects of our economy and especially trickling down into the lake real estate market.
Things you should know if you are selling a house in this environment:
o With fewer cash buyers the average transaction will take longer to close.
o Expect offers to bring back more traditional contingencies like financing, appraisal, or “sale of other property”.
o Higher interest rates mean that buyers requiring a loan will have a tighter budget.
o Buyers become pickier, fewer bidding wars, and if the house isn’t priced right, more price reductions
o Lenders are tightening and dropping loans if houses don’t appraise.
o Buyers may decide to wait until economy stabilizes and interest rates come back down.
o The remaining Cash buyers may wait for a cheaper entry point.
**All in all it is More important than ever to make sure your house is ready before it hits the market.
Cash is still king! And if you are one of those All Cash Buyers, get ready to take advantage of some great opportunities. We are seeing more inventory and large price reductions as sellers realize the market shift.