Stop! If you are thinking about selling, listen up!
Lately, I’ve had many conversations with homeowners who have thoughts of selling. But usually decide against it, for now at least. Some say they aren’t sure if they can find another home to upgrade, but most just don’t want to be without a shore home. I mean, I get it. Trust me, I do. I hear it over and over again why people just aren’t ready to sell.
But we are at a crossroads today. I am here to tell you not to wait any longer! You will kick yourself if you do. Keep reading why I feel so strongly.
Over the last year, we have seen a lot of market volatility but the overall real estate market has stayed strong. But over the last couple months rising interest rates and the summer slowed demand a little. Don’t get me wrong there are a ton of buyers still looking but its a little less motivating when conventional interest rates are upwards of 6-7% compared to 3% just 8 months ago.
I mentioned summer slowing the demand. Yes, every year it happens. Summer comes around and buyers are busier than ever. Kids are out of school. Trips and vacations are planned. The buying season comes before the summer since buyers want to be in their new home and settled to enjoy the summer. Now that we made it to June, buyers accepted that they are no longer in a hurry because they missed the deadline to be settled by the summer. It’s not that buyers disappeared, but the urgency dwindled. For many, the active searching for homes came to a screeching halt.
“Doesn’t sound all that terrible, so why do you want me to sell?”
For the last year, everyone has been talking about an impending market crash or recession. “The prices can’t continue like this forever.” “A correction is coming!” I always said, “as long as the stock market is doing well, a strong demand will always be there to carry the secondary home market in OC.”
But wait! How is the stock market doing now? Rough…. Just check out some of the biggest ETFs over the last 6 months.
YTD Returns
NYSE – DOWN 13.79%
DOW – DOWN 13.98%
SPY – SPDR S&P 500 DOWN 18.6%
VNG – Vanguard Real Estate DOWN 19.9%
VOO – Vanguard S&P 500 DOWN 18.9%
QQQ – Invesco QQQ Trust DOWN 27.8%
VTI – Vanguard Total Stock Market DOWN 20%
Remember when I said a strong stock market will keep real estate values strong in the secondary home markets? Well?…What now?
Well, it’s only a matter of time before the above situations affect the selling prices in OC. Demand has already slowed. Ask your mortgage agent! They are dead. Buyer urgency is gone. Now with a decreasing stock market, home values are right behind.
I am not an economist and I don’t try to be in any way. But I am also not dumb either. Everyone has access to all the information you can fathom. Find it! Use it! Make informed decisions.
I’d hate the market to drop, but I want you all to be informed. I do not want anyone to come to me in October to learn their home’s value dropped $100, 200, 300k in just a few months time. No one wants to be without a vacation home but I would sell to save $200k in value and spend $12k renting a home for a two week vacation, any day.
DO NOT GET ME WRONG – Real estate is still one of the best investments you can make, ever. I AM NOT SUGGESTING THAT THE SKY IS FALLING. The market has ups and downs. It is part of our economy. I am speaking directly to those who said they will sell before the market drops so they can get the most for their home. You may have missed the prime time a few months ago since demand has slowed. Luckily for you, values are still high for the majority of homes in Ocean City. So again, take advantage now.
One last note! Take notice of some of the new listings in Ocean City just these past couple weeks…Many are multi million dollar listings. Why sell a $3.5 million dollar home in the Gardens in June. Summer just started! If I had to guess, they are foreseeing the same thing I am telling you right now.
If you want to take advantage of the real estate values we’ve seen over the last year, the time is now! NOT in 4 months.
So if you want to make the best decision for your Ocean City investment, give me a call today so we can discuss the best listing price for a smooth, swift closing before any shit hits the fan.