Spring and summer are generally when activity in the housing market is at its peak. For this reason, home sellers can get away with higher list prices, as there are multiple bidders. That said, people looking to buy a house in Charlotte in the coming months should prepare for a sale price above market value.
The latest Real-Time Seller Survey from Redfin revealed 40.3 percent of people who plan on selling a house this spring are going to list their properties above market value. Meanwhile, 51.3 percent said they plan to price their house in the middle of the top range based on comparable sales.
If this strategy works out, sellers could end up in a profitable situation. However, buyers may not respond well to high sale prices, which could come back to haunt sellers in the end.
“Buyers this year are far less tolerant of overpricing, and homes that aren’t priced appropriately are likely to sit on the market until the seller is forced to reduce the price,” said Redfin Riverside area agent Paul Reid. “Buyers often interpret a price drop as a sign there is something wrong with the home, leading some to negotiate even more aggressively or lose interest altogether.”
Rising inventory could help alleviate high sale prices
Part of the reason sellers have the opportunity to price their properties higher than market value is the fact that inventory is limited. However, levels are on the rise, which could help ease some of the pain for homebuyers in Charlotte and other parts of the country.
At the end of March, total housing inventory was up 4.7 percent to 1.99 million existing homes available for sale, according to the National Association of Realtors. This represents a 5.2-months supply at the current sales pace, up from 5 months in February. Meanwhile, unsold inventory is 3.1 percent higher than a year ago.
As more properties hit the market, sale prices could come down, and buyer activity may increase.
“There really should be stronger levels of home sales given our population growth,” said NAR Chief Economist Lawrence Yun. “In contrast, price growth is rising faster than historical norms because of inventory shortages. With ongoing job creation and some weather delayed shopping activity, home sales should pick up, especially if inventory continues to improve and mortgage interest rates rise only modestly.”
With inventory on the rise, setting a high list price is a bigger gamble for sellers. This means there are more properties available for sale, which means buyers can pass up on a property that is priced too high.
Those interested in moving forward on a local housing acquisition, or hoping to sell a house in Charlotte, can benefit by partnering with Lodestone Real Estate. The trusted agency has helped hundreds of individuals successfully navigate the path to homeownership during its years in operation.