People are always asking, “Is it a buyers' market or a sellers' market?”, and honestly, there isn't a black and white answer to this question. There are so many factors: the price of the home, the seller's motive (or lack of) in selling their home, and yes, even the choice in real estate agent the seller picked to list their home.
The Price of the Home
This is a factor because there are typically more buyers in the lower price ranges than the higher price ranges. While this is commonly known, another way to look at this factor is, listing your home the right price right away will help the seller attract many buyers which decreases their days on market (also known as DOM). And this is also a no brainer, but many sellers and real estate agents like to think that this doesn't apply to “my” house or “my” listing.
The Seller's Motive
This factor is a huge one. Some sellers do not have to sell their current home in order to purchase their next, so they kind of lack motive in selling quickly. This typically leads to listing the home high in hopes to get what they want, which once again leads to a high DOM.
Choice in Real Estate Agent
I know this is a bit controversial of me to publicly say, but it is true. I could write a whole book on this topic, but I will try to keep it to one paragraph. Choosing a real estate agent that doesn't use a professional photographer, leads to homes not being marketed properly, which leads to low showings and high DOM. Choosing a real estate agent that doesn't guide a seller in listing their home at a price that will compete in the current state of the market also leads to low showings and high DOM. In most cases, when a buyer sees a high priced home, they think it is the seller that is unrealistic, when sometimes it was the seller's agent who was misleading the home price. No matter what the case is, the thought of “not wanting to deal with an unrealistic buyer” crosses their mind. They in turn decide to wait for the price to lower before they make a move, which typically takes weeks and more commonly, months, and by the time the house they originally had their eye on is a realistic price, they have already made an offer on another home. Choosing the wrong real estate agent is almost detrimental to the ultimate sales price of a particular home.
I'm not sure if you noticed, but in every factor listed above there was a reoccurrence: price. So if your home is listed at the right price, you will find yourself in a seller's market. If your home is listed high, then you will find yourself in a buyer's market.
Now again, this isn't black and white. Let's break down the numbers for May 2017..
Number of Sales :: 252
Compared to last year, this is an increase from 212.
Average Sales Price :: $435,251
Compared to last year, this is a decrease from $472,148.
Days of Market :: 44
Compared to last year, this is a decrease from 54.
Number of New Listings :: 322
Compared to last year, this is an increase from 259.
Current Number of Listings :: 1046
Inventory :: 4.15 months
This just means that if no more homes hit the market, the current inventory would carry us a little over 4 months.
There are many factors in determining the market outlook. Some of which are out of our control, but many of which are in our control. Sellers, as long as their agent has been guiding them in the right direction, are ultimately the deciding factor in whether on not it's a buyers' or sellers' market. The choices they make throughout the process of listing their home will ultimately decide the outcome. If one is adamant about getting their home sold, they are setting themselves up to sell in a sellers' market. If one just wants to see what they'll get, and the selling price of their home is inconsequential to a large degree, they ultimately make it a buyers' market.
We are so happy you found our little corner of the interwebs. We look forward to y'all reaching out to us. We love to answer questions and welcome them. Recently we created some local maps, and you can download those by clicking the image/link above. Below, you will find an index of some very helpful information to assist you in learning more about the Houston suburbs. If you are relocating to our neck of the woods, we hope you reach out to us, because we would love to help you by being your local realtor and friend. Hugs, Jo.
Thoughtfully written for you by Jordan and the Jo & Co. Team.
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If you are overwhelmed..
Now if you are feeling overwhelmed on where you should plant your roots, I would love to talk to you. You can schedule a call with me by click this link: http://byjoandco.com/call or just send us an email: [email protected]. There are some amazing communities all over the Houston suburbs. In this post, https://search.byjoandco.com/blog/best-neighborhoods-in-houston/, I deep dive into all the different suburbs/neighborhoods that you might want to consider, and why. There are many resources here, so please reach out if you are curious what to look at next! Thank you for trusting us.
Links to check out..
➟ Our YouTube Channel :: http://byjoandco.com/youtube
➟ How do property taxes work in Texas? :: http://byjoandco.com/propertytaxesintexas
➟ Things to do in The Woodlands :: http://byjoandco.com/inthewoodlands
➟ Safest Neighborhoods in Houston :: http://byjoandco.com/safesthouston
➟ Best Neighborhoods in Houston :: http://byjoandco.com/bestneighborhoods
➟ Houston Texas Where to Live :: http://byjoandco.com/houstontexaswheretolive
➟ First Time Texas Home Buyer :: http://byjoandco.com/firsttimetexasbuyer
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At Jo & Co. we know that most people struggle with the home buying or selling experience. We are a brokerage, real people, that do more for you, by being with you every step of the way, so that you plant your roots in the right soil. One way that we go above and beyond is with the content we share on YouTube. Click the photo below to explore our channel.