Is the Real Estate Market Frenzy Over? Or Is this “Normal?”
With a real estate market thrown into chaos by a pandemic, massive population movement, and the fastest increase in interest rates ever (nearly twice as fast as the rate hikes of 1988-1989!), it’s been a turbulent time to consider buying or selling a home. The Petaluma market in 2022 was driven by tons of buyers and very little inventory, seeing record high over-asking offers and homes that barely made it to market before going into contract. But that’s definitely not “normal!”
We may begin to see something resembling normal as rates begin to level out and fresh home inventory on the market brings dormant buyers out of their fall and winter hibernation and enjoy a less chaotic scene. Listing early in this calmer, historically normal market will have its advantages!
Serious buyers will be invigorated by slightly less competition, making their offers stronger and more willing to bid against other potential buyers for a home they love. Homes are expected to sit on the market slightly longer than before, a couple weeks rather than a couple hours, giving buyers the chance to really consider a purchase and put forward an earnest offer, instead of something that they hastily put together without thinking due to the fear of missing out.
This is great news for home sellers! They can be more confident in every showing and rest assured that a buyer and their offer will make it to the closing table. When priced right, homes can attract a few of these buyers who will inevitably bid their highest and best offer to win the home, resulting in the highest selling price that the market can support!
This trend to a more “normal” market is great for everyone, resulting in a healthy, robust real estate market where you can sell your home for a great price and still find your new dream home without overpaying!
Is there an “Off Season” in Real Estate?
The colder, darker, wet months can slow things down a bit, but that doesn’t stop home sellers from getting the same success their summertime counterparts enjoy!
Here’s how the Peg and Jeremy King Team listings fared in the “off season” (November-February) for the last 3 years!
The “off season” did not stop our listings from receiving great, often over-asking offers! Our listings sold in this time frame over the last 3 years sold for an average of 102.2% of the asking price, with the highest being 127.27% over (Listed at $1,100,000 and sold for $1,400,000 on 11/13/2020).
Peg and Jeremy King Will Help You Navigate This Real Estate Market
If you’re looking for help and expertise in today’s real estate market, especially in the Petaluma and Sonoma County areas, look no further than Peg and Jeremy King! We’ve been top Realtors in the area for decades and don’t plan to slow down anytime soon, no matter what the market is doing. If you’re looking to buy your dream home, or sell your current home to move up to your dream home, talk to us about how that process may look and when steps to take!