By Mike Bodeen · 28 November 2022
Plus, Buyer Buy Downs and One More Seller Strategy
Renters are now discovering there’s a lot more supply recently to choose from and the landlords are being more accommodating to renter prospects.
The following numbers supplied by the Cromford Report seem to back this up. All dwelling types are affected by the huge increase in homes listed for rent, for example:
single-family detached are up 128%
townhomes are up 122%
Gemini/twin homes are up 110%
apartment-style homes are up 99%
patio homes are up 75%
The average rent being asked for a all types of homes is now $1.35 per square foot per month, down from $1.40 per square foot per month just 3 months ago. (see chart)
Apartment rents are much higher, because they tend to be located more centrally, but these are now trending downwards as well. The average rent per square foot per month for apartments peaked at $2.26 last February but has declined since then to $1.86.
Buyer Buy-Down’s
We know that the supply of homes for sale has increased helping buyers in their selection choice. Last week we discussed buyer buy-downs, of which the main-stream-media is now catching onto. Here’s one such article I caught today.
If a buyer buy-down might be right for you, or you’re not sure, contact us for our great lender’s contact info.
One More Seller Strategy
The last two weeks we’ve looked at strategies that home sellers can use to mitigate these challenging times they’re in. There’s one more seller strategy that could be employed now, which is a twist (some might say a contradiction) on the first bit of advice from two weeks ago.
This strategy is for someone who is planning on putting their home on the market in January, but they are actually ready to put their home on the market now. And it doesn’t require waiting 45 days as in our other suggestion.
This strategy can be called a few things, but I like “lightning strike,” because it’s quick. Here it is:
A Seller puts their home on the market with all the marketing bells and whistles now – for just 7 days. Then pulls it off and enjoys the rest of the holidays.
Why? Because during that one week period there could be a current buyer in the market who sees this home come on the market as a new listing, wants this house, looks at it, and buys it. Deal is done.
The advantage to this is that the seller may catch a buyer looking for a home now who may not be around in January or February. If it doesn’t sell, the home is pulled off the market to go back on the market as planned in January or February.
Even though the market historically slows over the holidays, new buyers still enter the marketplace.
Just a thought.
Market data referenced in this article comes from The Cromford Report.