According to data collected, the rise in home prices between 2017 and 2018 is a whopping 10%. To put that in perspective, home prices have been rising steadily every year for the last 20 years, but only by 3-4% per year. As of March 2018, only 1 in 3 homes on the market are priced below 200,000, despite over half of the buying population competing for homes in that range.
If you are an agent representing a seller, this is good news for you. You are likely to make your clients very happy, as competition will drive buyers to offer full asking. Make sure that your clients do not get greedy, however, as overpriced home will sit on the market and lose value. Have a thorough chat with them about why they are selling and what their pricing options are so that you are in agreement before you put the home on the market, because once it is there it is likely to get snapped up.
If you are representing a buyer, navigating the current market can be a little trickier. With homes being so expensive, it is easy for buyers to feel discouraged when they feel like they can’t afford what they want. Before setting out on a search, sit down with them to hammer out all the basics. Make sure to do a mortgage calculator, so they know what to expect, and show them what they can expect for their budget before you go out and start looking at houses. While it is tempting to show homes at the top of or just outside of your client’s budget range, try to avoid showing them something that they cannot afford but might fall in love with.
Being a realtor in a hot market like this one can add some excitement to your job, but it is still important to keep the client’s needs first. Making sure that they trust you to lead them in the right direction so that they don’t overpay for a house, or undersell their current home, can make them loyal customers for life.