Recently we’ve been seeing signs of softening in the Nashville residential market. Nothing statistical yet, nor can we tell if it’s long-term. But there are clear signs that the white-hot pace of the past couple of years is beginning to slow.
For example, we’re seeing listings stay on the market a little longer and price reductions happening more often. Multiple offer situations are occurring less frequently.
One of our current listings went under contract this week at asking price. It only took five days and we had three full-price offers. That sounds great, and it is. But, in the spring our listing on the same street generated ten offers in three days and all were over asking price.
The market isn’t slow by any means – it’s just not quite as crazy.
What does this mean for buyers?
It means more opportunity and a little breathing room.
In hot neighborhoods, buyers have had to decide and make an offer after a 15- or 20-minute showing. Rarely did they have the luxury of “sleeping on it.” When we spotted a good listing, our clients had to go see it that day, or risk losing out to someone else. It’s not quite that urgent these days.
No longer is asking price the automatic starting point for a bidding war. On our current listing, an asking-price offer was enough to buy the house.
What does this mean for sellers?
It means the pressure has shifted, and some of it has landed back on sellers.
Location, price, and condition are the three main factors in desirability. Price and condition are the two the seller can control. It’s time for close attention to both.
Since bidding wars are less commonplace, the asking price needs to be realistic. Sellers and realtors need to look closely at the comps and get serious about what a house is worth.
And condition is more important than it used to be. Not to say that everything has to be perfect. People buy fixer-uppers all the time. But, the better the house shows, the better it will sell. Neat, clean, accessible and cared-for are fundamental.
It’s still a good time to sell. The market is strong. Values remain high, credit is cheap, and a solid, well-priced house will still sell quickly. But the crazy days seem to be winding down. At least for now.
If you, or someone you know, needs to buy or sell a house, we can help make that happen. Let us know what we can do to help.