Homes for Sale or on Sale? There are two types of residential real estate on the market right now: homes for sale and others on sale. Pricing is a bit all over the place because homes don’t enter the market at the same time. Some were listed in May, others entered in August and more were placed on the market yesterday. The May market was very competitive and it’s also five months old. The May market doesn’t mean much today, and neither does June, July, or August for that matter. What matters is now which is why many home prices are decreasing.
Sellers are re-pricing their homes for sale to today’s market
Slowly, sellers are going with the flow because going against the tide isn’t working. Treading water doesn’t get you anywhere. It’s not enough to just be for sale.
Are the homes for sale or on sale?
Sellers in this market need to stay priced within their comparably active counterparts or slightly below them. If there are pending comps – even better because those listings got someone’s attention.
Six months ago, the list price was essentially the base of what a house would sell for with buyers deciding it was worth more. Today, the list price is typically the most a buyer is willing to pay.
Just being for sale is not enough
For buyers, the same rules of engagement apply within any market. Newly listed homes for sale are most likely priced to current market conditions and are going to be the least negotiable. Homes that have been on the market longer than their comparables, start to stick out because just being for sale isn’t enough anymore. They aren’t competitively priced and as a result, they are passed over. Make no mistake, buyers are flowing within the market as interest rates are changing the reality of what they can afford.
City of Austin Real Estate Market Data for the first half of October 2022
Homes are still selling over the original list prices, but those that do – sell quickly. Out of 327 homes sold in the City of Austin in the first half of October**:
* 39 sold over the original list price
* 32 sold at original list price
* 256 sold under the original list price
Out of 39 Austin homes for sale in the city of Austin that sold over the list price, the average time on the market was 10 days. They were the exceptions because something about them was exceptional.
My Advice to Sellers: Meet the Market Where It Is
Sellers need to be prepared to meet the market where it is as buyers are shopping right now. They want to see what’s on sale. Sellers need to stay current with data and flow with the market to navigate these seas.
**Based on MLS data report run on October 18, 2022. Data compiled by ACTRIS© Matrix data through ABoR. Information deemed reliable but not guaranteed and should be verified. Content is “AS IS,” without any warranty, express or implied. Results were calculated from the number of listings in the MLS at the date of the report. Off-market data not included.