At it’s peak the sold to list price ratio was 1.1, meaning buyers were paying an average of 10% over list price. In our market that means a buyer was bringing an extra $35k to the table to secure the home. The sold to list price ratio has normalized and homes selling at or around their list price. Now that $35k can stay in the buyer's pocket. Yes, they will be buying with a higher interest rate than before, but that extra money in their pocket could offset the impact of the additional interest for 7-10 years, which happens to be is the average length of ownership or plenty of time to explore refinancing.
Then consider the facts that 1 in 4 homes needed price reduction in order to sell in September and 17% of seller have given concessions in order to sell, nearly 3x more from just a few month ago. All of a sudden, buyers have some real competitive advantages. Maybe one of your messages to consumers who are concerned about buying at the top should be, “Interested in competitive advantages that could offset the impact of interest rates? Let’s talk.”
I would love to hear your thoughts on messaging we are providing in these last 3 videos so send me some feedback. Keep elevating our industry!
David Veldkamp
RE/MAX GR
Mobile: 616.460.6123
Office: 616.957.0700