Rising rates haven’t stopped sales, and buyers and sellers who understand today’s market can both come out ahead this fall.
As we head into today’s fall market, the question I hear most is whether interest rates are killing the market or helping it. My answer is neither, and they certainly haven’t stopped sales. Along the Wasatch Front, average days on market are around 58, and inventory is up almost 12% compared to this time last year.
Buyers move for life, not rates. Even as rates climbed during the week, we still had offers come in from buyers locking in properties. People don’t buy based on the time of year or the interest rate. They buy because something in their life has changed, or because they have money sitting in the bank and want to put it to work in an investment.
Know what a half point costs. The average purchase price in Salt Lake County is around $600,000, and single-family homes statewide average about $555,000. Using a round $500,000 as an example, a 7.5% rate versus a 7% rate works out to roughly $150 to $170 a month, depending on the price point.
When I’ve built a matrix on this in the past, that payment difference on a $500,000 home was the equivalent of about $15,000 to $20,000 in price. If you’d like to see the matrix, I’m happy to share it.
“Unfortunately, common sense in real estate isn’t common practice.”
Buyers are asking for more help. With more options available, buyers are asking for a little more in closing-cost concessions so they can buy down their interest rate. They’re also asking for a few more repairs and for homes that are closer to move-in ready. Some want extra time to get into the property if they have a home to sell or another move underway.
Prepared sellers have the advantage. On the seller side, you have a real advantage because most sellers aren’t preparing, pricing, or marketing their homes. Our listings stand out and draw not only offers but multiple offers, and it comes down to how we get them ready.
Preparation makes a home show-ready. Every listing needs to be white-glove clean, and anymaintenance or safety items need to be resolved. We handle outlets that don’t work, lights that are out, and cobwebs on the ceilings. Unfortunately, common sense isn’t common practice in real estate.
Presentation sells the whole picture. We start with a staging consultation and then stage the home, use virtual staging, or stage around what you already have. From there, we show buyers the floor plan, how the home walks, and what the aerial tour looks like.
Buyers fall for the neighborhood too. A home isn’t just sticks and bricks, so we do an intake with you about the neighborhood and what’s close by. Buyers can then form an emotional attachment to the location and the home itself.
Opportunity exists on both sides. Markets are always evolving, and right now I see opportunity on both sides. Sellers who prepare look more attractive because most of their competition isn’t doing the work, while buyers have more inventory, more to choose from, and more options.
We’re still selling homes, getting consistent showings, and receiving multiple offers, and it’s a strong market for Justin Udy & Team Real Estate. I’ve been through shifts like this many times, and they don’t scare me. When the market changes, we change how we market, where we market, and what we do. We pivot on a consistent basis; the show must go on, and that constant change is part of why I love this business.
Maybe you’re considering buying or selling, or you’re wondering whether a move even makes sense and what it would take to prepare. Call or text me at 801-285-0521, email me at Justin@JustinUdy.com, or visit justinudy.com. I’ll get you the information you need, and I look forward to helping you.
