Early indications in advance of third quarter reporting show signs of a market leveling off and cooling. Last year saw the biggest jump in real estate prices and activity in more than a decade, with bidding wars becoming the norm throughout the nation. In Westchester, median prices on single family homes increased nearly 13% YOY in the second quarter of 2021,
with days on market plummeting. Recent weeks, however, have shown a decrease in bidding wars nationally
, according to Realtor Magazine. Similarly, homes are experiencing more days on market, and have seen price cuts
, although the data is not in for Westchester yet. For buyers wary or exhausted by bidding wars, of course this is welcome relief, signaling it may be time to wade back into the market. For sellers, however, this news is not
bad. Leveling does not mean decreasing. It means that both buyer and seller will have time
to evaluate and consider their decision. Bidding wars frequently meant rushed decision making, with both buyer and seller remorse. In some instances, the FOMO for sellers led to regret over their decision to sell in the first place.
Also, in the haste to choose a buyer among a myriad of offers, the highest and best often turned out to be neither - with buyers changing their minds following inspections, renegotiating terms, and renegotiating at the closing table. In addition appraisal shortfalls became more frequent, leading to renegotiation late in the process. In short, the haste borne of an over heated market led to uncertainty and stress on the part of both
buyers and sellers. A leveling market may mean more deliberative decision-making for all.