Newspaper Headline: “Motivated Buyers Sparked Twin Cities Home Sales to a Record Pace in June”
Once again, Twin Cities Realtors are going to have to explain to their clients brandishing the latest housing news headlines why all is not as it may seem.
Specifically, even in a Seller’s market — which continues to characterize the Twin Cities housing market overall — “one size does not fit all.”
Unrealistic Expectations
Here are 3 things the Star Trib gets wrong — or at least glosses over.
One. Price point matters.
The hottest part of the Twin Cities housing market is at the lower end, where active Millennial Buyers (yeah!) are pouncing on well-priced homes in good condition, in desirable locations (note: such homes sell well in any market).
By contrast, the supply of upper bracket Twin Cities homes is much more plentiful, and the pace of sales commensurately slower (never mind multiple offers).
Lagging vs. Leading Indicators
Two. Timing matters, too.
Sales statistics are by definition a lagging indicator.
Meanwhile, active local agents know that real-time indicators (such as showing activity and new listings) reflect a July slowdown.
Or, agents can simply extrapolate from what they see going on with their own listings and Buyers.
Three. Market time varies by home.
Homes requiring significant updating, in more marginal locations, or with other issues (deficient curb appeal, floor plan, etc.) appeal to a smaller subset of Buyers and therefore are more difficult to sell.
Notwithstanding the latest headlines, owners of such homes can expect longer market time.
Still For Sale — After 3 Days(!)
It all adds up to a gap between Buyer and Seller expectations vs. what Realtors know to be true of the market at any given point.
Which explains an agent acquaintance who had to reassure their anxious Seller the other week.
The client’s concern?
Even though there had been more than a dozen showings and serious Buyer interest, their home hadn’t attracted multiple offers yet.
Elapsed market time: less than 4 days.
See also, “Why Realtors Hate Zillow.”
