I get a lot of questions about this changing market and what it looks like ahead. None of us have a crystal ball, but we do have a good read on what is happening now. Last month we addressed the rebalancing of the market, and how this shift is bringing us back to pre-pandemic levels of business. The problem we are seeing is that the expectations of Buyers and Sellers are still not quite in sync with the shifting market. Most Buyers are looking forward – they see the shift and how it gives them more options and advantages despite a higher cost to finance. Most Sellers are looking backward, unable to understand why their neighbor’s home with an identical floor plan and similar condition sold for more back in March than they will likely get now.
Our job as real estate professionals is to educate our clients about the new market realities.
For Buyers: Inventory is still low, and there are still more Buyers than homes available, so this is not the 2008 fire sale. Higher mortgage rates do decrease your buying power, and the house you could afford at 4% will now have to be a less expensive house at 7% to keep your payments the same. Offering under the asking price with contingencies is normal again, so enjoy this shift as a respite with the ability to negotiate a better deal than you could probably have gotten over the last 2 years. Rates may not decline significantly for a while, so plan to refinance later.
For Sellers: Days on market are longer, and multiple offers 30% over asking are increasingly rare vs the norm. This doesn’t mean the market is collapsing, just that we need to adjust expectations. Every home will sell at the right price, and keeping expectations aligned with the current conditions is important. The market doesn’t care what you want for your house, or what you need out of the home financially.
Once everyone realizes how this shift affects their Buying power or their net proceeds and likely timelines, everyone can still win and be happy in the end.
Below shows days on the market over the past 5 years as we move back to the average before the wild ride of the pandemic market.
The cutest thing I’ve seen this Halloween season are these shrunken apple head galettes with a cranberry-cider coulis from Lauren Cooper of Aspen Street Cakes. She kindly shared the recipe on her Instagram which I have pasted below.
Apples are halved, peeled and carved into apple skulls, brushed with maple syrup and then baked with dark brown sugar, cinnamon sugar, and butter. The magic happens in the oven where the heads shrink as they bake becoming delightfully creepy and delicious and the perfect apple pie goo forms underneath. Topped with vanilla ice cream and you might just forget all about that leftover Halloween candy.
1 recipe of your favorite pie crust (or use store bought) rolled out on parchment paper for eight 5” circles then transferred on the parchment to a baking tray (galettes will be formed on the baking tray)
4 small apples
Juice of 1 lemon
2-3 TB maple syrup
1/4 cup packed dark brown sugar
2 TB cinnamon-sugar
3 TB cold butter diced
Egg wash (1 egg beaten with 2 TB water) and coarse sugar for the crust
Peel, halve and scoop out seeds/core of apples. Using a melon baller scoop out eye sockets. Using a sharp paring knife make cuts for nose and mouth. Brush with lemon juice.
Spread crusts with brown sugar to about 2” from edge, sprinkle cinnamon sugar on top and then dot with butter. Place apple skulls on top and brush generously with maple syrup. Fold up edges of crust to form the galette. Brush crust with egg wash and coarse sugar
Bake at 375 40-45 minutes or until apples are tender and “shrunken”, goo is bubbly and crust is golden brown. Serve with cranberry-cider coulis
For the coulis:
6 oz fresh/frozen cranberries
1 cup apple cider
1/4 cup sugar
1 cinnamon stick
Combing all ingredients in a small saucepan and bring to a boil. Reduce heat and simmer 15-20 minutes until cranberries burst. Remove cinnamon stick and purée in a blender or food processor.
Until next time,