Summertime means a lot of things. Hot weather, family vacations, and (usually) an uptick in real estate prices. People choose to move in the Summer for many reasons, one of which could be getting settled in before the new school year starts. This year, experts expected August to be just the same as every other August. However, despite low mortgage interest rates, the average home price actually went down.
It’s believed that this dip in home prices may be linked to fear of a looming recession. Home prices fell to a national average of $309,000 in August which is down 1.8% from July. Is the fear of a recession keeping shoppers away and, in turn, causing sellers to list low?
Is this a self-fulfilling prophecy?
The most affordable homes sell quickly as they’re in short supply. Buyers who can only afford those homes are nudged out of their price range and then either push their budget or take a break from home shopping altogether. When these buyers stop looking, it sometimes forces sellers to lower their prices or take their homes off the market completely.
It’s in this way that falling home prices is almost cyclical. List high and you alienate a whole swath of buyers. List low and potentially discourage buyers who can’t snap it up quick enough. It almost feels like there’s no right answer! If you need advice on when to list your home, and for how much, contact us today!