I was asked, “Can you sum it up in one sentence?”
Yes – the inferior homes won’t be selling as fast, or for as much, as the superior homes.
There should be a gap – a sizable gap – between inferior and superior homes. But over the last year, it got squeezed and those who were selling inferior homes really made out nicely. Not only did they sell quickly, they didn’t have to discount much, if at all.
Those are the homes that will be sitting around longer as buyers catch their breath.
But the counts of active listings are so low that it won’t matter much if they creep up a bit:
> There should be a gap – a sizable gap – between inferior and superior homes. But over the last year, it got squeezed and those who were selling inferior homes really made out nicely. Not only did they sell quickly, they didn’t have to discount much, if at all.
Isn’t there a phrase from c. 2006 for that? “Slinky Effect?”
No bargains left. Still values left. Unfortunately most of those values still have too many willing to overbid. Eventually this will self correct.
I just got my second cold call this week looking to see if we were interested in selling a rental in the mountains. After the first one I figured it out. Zillguess has the property at half retail. These cold calls are predatory on people who haven’t tracked current prices. It is also a warning to relying upon the online sources. Looking forward to the first lawsuit from an owner who can show a Zillguess financially harmed them.
The Super Slinky Effect of All-Time!