The market is correcting and prices are slowly coming back down to Earth. Or at least asking price, anyway. Summer 2021 has been interesting, to say the least. While some homes have been flying off the “shelf” at 45% over asking, others have begun to sit. Some have even *gasp* dropped the price.
Market corrections are not the same thing as a bubble bursting. This time, it’s a combination of buyer fatigue (record high prices! bidding wars!), COVID restrictions loosening/summer travel, continued inventory shortage, and more factors have contributed to the mad runaway market this summer. Thankfully, it seems this slight chill may last for a hot minute and we can all catch our breath.
Median Sales Prices are Leveling Off
List Price vs. Sold Price
Keep in mind that’s the median below. We saw more than a few super-hot million-dollar properties go for as much as 40% over asking! Just getting closer to list price is a move in the right direction.
For sellers, it’s been a wake-up call, for sure. All the hype about the nutty market is most certainly NOT a guarantee of a bidding war.