I’m back with a market update for the Highland Lakes.
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Currently, the market is pretty balanced here in the Highland Lakes—it’s weighted neither toward the buyer nor the seller side, although there are some indicators we’ve seen that shows the market may be more fluid than it would appear to be.
This year, buyers and sellers seem to have very divergent expectations when it comes to price—more so than we’ve seen in the last four or five years. We’ve had way too many offers that were presented where the buyer and seller could not come to terms and we didn’t end up going to contract. Invariably it was because they couldn’t come to terms on price.
What is that doing to the inventory in our market? No single category has an overabundance of inventory. The biggest opportunity for a buyer might be with an older home, where they might find the biggest bargains. Sellers’ opportunities to do well in the market will come from their efforts to get their homes in the best condition possible to make it stand out from the rest of the competition.
Expect top dollar where demand is higher.
What’s going on with home prices? Most buyers are asking for new construction; those numbers are steadily increasing. However, because the cost of construction is going up, many of our builders are concentrating on high-end luxury homes, meaning that we need more moderate and entry-level homes in the market—homes anywhere between $200,000 and $400,000, depending on the subdivision.
We have more inventory and more competition for buyers in the category of resale homes, and because of that, we’re seeing price reductions being made sometimes multiple times before a property goes under contract. Additionally, the days on market are beginning to lengthen for resale inventory.
Expect top dollar where demand is higher. In our market, the demand is high for new construction homes and for homes that have been remodeled to fit with the sought-after, soft, contemporary style.
My advice for buyers and sellers in the market would be to make sure that you’re doing your homework with regards to price. Don’t just look at an average for the last six or 12 months; make sure you’re looking at the most recent sales, and watch the category you’re interested in to see if it’s trending up or down.
If you have any questions about the market or about buying or selling a home, please reach out to us. I’d be glad to help you.