Local Housing Market Begins Shift Toward Buyers
Much has changed in the housing market. Just a few months ago, the market tilted toward the sellers. Now, it’s starting to lean toward the buyers.
“Now is a great opportunity for those buyers to get back into the game,” said Brandon Doyle with RE/MAX Results in Maple Grove. “They’re going to be able to negotiate a little bit more on the property and they’re not going to be competing.”
Rising mortgage rates will likely continue the slowdown. Recent surveys show 30-year mortgage rates approaching or crossing 5 percent, the highest rates have been in seven years.
“For buyers it’s a little more difficult. With a half percent increase in interest rates. That equals about a 5 percent decrease in what you can afford overall,” said Doyle.
Listings Increase in Outer-ring Suburbs
On the plus side, listings have gone up. In the Twin Cities, listings grew by 5.9 percent in September. In Maple Grove, it was a nearly 15 percent spike.
But it’s not happening everywhere. Several inner-ring suburbs in the CCX News viewing showed a drop in listings. In Robbinsdale, that number fell more than 20 percent. Doyle says the reason is simple: new construction and the availability of land in Maple Grove.
Technology Improves Efficiency
Technology is changing real estate too. Doyle adopted 360 virtual tours, making the buying process more efficient. He credits virtual tours for selling homes more than 41 percent faster based on data from MLS.
“With the 360 tour, what you see is what you get,” explained Doyle. “So it’s great for the sellers, because if there’s something about the house that’s not going to work for the buyer, why should we waste everyone’s time.”
But with technology, comes competition. Online marketplaces like San Francisco-based Opendoor threaten to strip the need of working with a traditional real estate agent altogether. Doyle is well aware.
“What I would caution the consumer is, if you’re going to sell your house, don’t let the buyer tell you what’s it’s worth,” said Doyle.
Doyle says while online marketplaces may work for some, they won’t work for everybody, and cautions about hidden fees.
“What I have seen in the last month or so, the sellers that have sold through that company have lost about 10 percent of equity,” Doyle said.
A Word of Advice for Buyers
You want to avoid the lipstick on a pig.” – Brandon Doyle, author of “Real Estate Marketing Playbook”
If you are thinking about buying a home this fall, Doyle gave this advice:
“You want to avoid the lipstick on a pig, those flips where, yeah, they did the granite, they did the nice painting, and the cheap flooring, and it looks nice, it looks very pretty. But what they didn’t do, you’re not aware of, is the furnace might be on its last leg, or there could be some deeper issues. So it’s really important to get a home inspection.”
The “Real Estate Marketing Playbook”
Doyle followed in the footsteps of his father by becoming a realtor. He recently wrote a book on the housing market called “Real Estate Marketing Playbook.” It’s a reference guide for real estate agents to survive the topsy-turvy market.
“What’s most important is that they not try to implement everything in the book,” explained Doyle. “So It’s a list of things you could do, not necessarily that you need to.”