By Sean C. Hamilton
Keller Williams Realty Atlanta Partners – Perimeter East
For better than two years we have seen a real estate market unlike anything most of us have ever known. Anyone looking to purchase, sell or invest in real estate quickly became keenly aware we have been in a strong sellers’ market that has largely been driven by historically low interest rates. According to the Federal Home Loan Mortgage Corporation (Freddie Mac), in December 2020 mortgage rates reached an all-time historic low of 2.68% for a 30-year fixed mortgage. Low interest rates entice buyers to make larger purchases and borrow more. The increase in consumer spending, increases demand.
A sellers’ market occurs when the demand for homes exceeds the supply, or there are more buyers in the market to purchase than there are homes on the market. A seller’s market creates endless opportunities for sellers to put their homes on the market and command top dollar. In most cases, homes for sale on the market receive multiple offers, and sell for well over the asking price. However, this type of market can be extremely discouraging for buyers because they find themselves in stiff competition with multiple buyers that lead to bidding wars as they battle to secure the home of their dreams. In many cases buyers often find themselves paying a premium for their home of choice.
A sellers’ market like the one we just experienced also creates unique challenges for brokerages and real estate salespersons. In an ultra-competitive market, real estate professionals must find innovative ways to keep up with a frenzied demand, ensure their clients best interest are met, offers are accepted and transactions go the distance ending at the closing table. Agents must also be skilled at helping sellers filter through multiple strong offers and decide which offer is in their best interest. All cash, over asking offers with varied, few or no contingencies becomes common place and requires a skilled agent to help sellers understand what’s being presented to them. While a sellers’ market creates a windfall for many, eventually the tide will change, and the market will begin to shift. One thing that is certain in the real estate industry is that the market WILL shift. It’s impossible to pinpoint exactly when shifts in real estate will occur, but what we can be certain of is that shifts are inevitable. Shifts in the market should not be perceived as “bad,” but as an opportunity. There is always opportunity in real estate.
When news of a real estate shift enters in the public domain, the reaction of many is fear. Buyers begin to get cold feet and become reluctant about purchasing. This can lead to buyers missing out on great opportunities to get a good deal. Conversely, sellers may soon realize their homes are sitting on the market longer because in part, it may be “overpriced.” The bottom line is that everyone begins to move with caution as the market shifts. This is where a skilled real estate salesperson can help buyers and sellers navigate a complex changing real estate market. An agents value is immeasurable as they help sellers understand the importance of appropriately pricing their home for the existing market and helping buyers find great values as the market shifts.
Are you a buyer or seller in today’s market and aren’t quite sure what this shifting market means for you? Do you have questions about the current market and want more information to help you navigate through it? I’d love to hear from you and discuss how I can help you reach your real estate goals. Give me a call today to discuss. Sean C. Hamilton with Keller Williams Realty Atlanta Partners.
Call or text me at 202-651-0309. I can also be reach
via email at sean.hamilton@kw.com. I look forward to hearing from you.
