January has historically been a veeeery slow month, but for the past few years? Not so much. If you’re thinking about selling, and thinking you’ll need to wait for spring, you really don’t, these days. If you’re ready, the market is likely ready for you.
As you have probably seen me say before, a balanced market is about 6 months of inventory. That means if no other homes come on the market, it would take 6 months to sell through all of the homes on the market with the current population of buyers. It’s been a minute since we’ve been there. We went as low as .7 months over the pandemic, but for the last couple of years, it’s gone up a little, bit by bit. As we head into 2025, our market sits at still a pretty seller friendly 1.7 months. Pretty crazy for January. (And it used to be unheard of.)
Anecdotally, over the past month (including the week of Christmas) had multiple clients in multiple offer situations, on both sides of the equation. You’re probably thinking, “This same old song again? When will this ever change?” and you’re not wrong. However, there are a couple of caveats to this sellers market, for those buying, AND yes, even for those selling.
First of all, if you’re selling-
- If you’ve been watching the market, or maybe watching your neighbors, you may want to price your home at the final sales price of the neighbor’s home. But wait- as hard as it often is to believe, you will likely get more money at the end if you price it right at (or even just under) the price the market and the comparables show. This of course is a little bit less simple, and a little more nuanced, than that, but I cannot say enough how important pricing is.
- Over the past few months, the market has dipped just a bit for homes to sell right at 100% of the asking price. (On average.)
- Keep in mind that that 100% is an average, but that also, if the sales price is reduced, and the seller gets that price, it’s still 100%.
- Get your house ready. I mean, really ready. That means declutter, make those small repairs you need, refresh lighting, paint, landscaping, etc, if you need to, and clean, clean, clean. (And clean some more!)
- While there are lots of homes selling quickly (with a median days on market of 17), and for multiple offers, even, generally speaking, these homes are usually the ones that are priced well, and show really well. If they’re not both, they need to be really heavily one or the other.
If you’re buying:
- DON’T get discouraged before you start! (I mean, don’t get discouraged after you start, either.) I really, truly believe that “the one” is yours in the right timing. In truth, I also believe that there is not usually just “one” out there for you.
- Get prepared and stay prepared.
- That means have a lender (preferably a local lender!) run all of the scenarios that might work for you- downpayment, closing costs, payment amount, and special programs.
- If you need a gift of funds and a gift letter, make sure you know how that works, and what the lender requires.
- Get a reapproval letter from them, and make sure that you’ll be able to reach them if you need a last minute change that’s property specific.
- Understand your responsibility in the “new world” of buyer agency- that means when you’re working with a buyer’s agent, you may be responsible for paying your agent’s commission. In most cases, the seller expects to pay all or some of it (remember- most comparables still include some, often all, of both the buyer’s agent commission as well as the listing agent commission). In the occasions that we cannot include it, we can often adjust the price accordingly. Every now and then, though, you the buyer may be expected to pay that out of pocket. Don’t forget to factor that in.
- Once you know your numbers, start looking, and be reasonable when you write an offer. Get familiar with the market and the comparables, and listen to your agent! Unfortunately, it’s still not the market to get a deal in, but that doesn’t mean you have to waive everything and go crazy, either.
- Inspections are so back, and I’m so excited! There were definitely a few years there where we were seeing people waive inspections with regularity, and now, we are seeing more inspections, repairs, and credits for repairs again.
- We are still seeing multiple offers, but not in the insane numbers we were. That means you may still have to compete, but usually only against a few people- not 25. That means that while the offers may go over, they’re probably not as crazy as they once were.
Inventory is still low, but I’m seeing more hope out there for buyers than I have for a while. If you’re curious about buying, call me. I’d love to help you determine if it’s the right time for you.
If you’re thinking of selling, don’t think you have to wait until spring. The buyers are out there now, and if you need to do anything to your home to get it ready (and most people do) the time to get started on that is now!