Why a Neutral Market is a Good Thing

By Lauren Mingay
Team Leader, RRS

There have been days it felt like a tornado ripped through our office. This summer, we experienced one of the fastest moving real estate markets I have witnessed in my 12 years as a licensed Realtor. For months, sellers were experiencing multiple offers and, in some cases, above-asking price contracts with no inspections. It was a dog-eat-dog summer and to be quite frank, while we love selling a lot of homes, I am relieved that it’s starting to transition into what we call a “neutral” market. Both buyers and sellers should gain confidence in this more stabilized and predictable real estate market.

Over the past year, sellers experienced an incredibly high level of BOM’s- or, “Back on the Market”. These occur when a buyer comes in quickly, makes a rash decision to write an offer and then, for whatever reason, walks away from the deal. We witnessed many first-hand buyers getting “cold feet” and scrambling for a way to get out of a contract. This resulted in frustrated sellers, sometimes left without a home if the one they were purchasing was contingent upon their home sale, and also added up to a lot of lost valuable time of the market. I personally feel that sellers will see more guaranteed offers come in now that buyers are under less pressure and have the time to do second and even third showing before they write an offer. 

This year, many buyers found themselves “a day late and a dollar short.” With homes selling in a matter of hours, many buyers would find properties already under contract by the time they could fit a showing into their schedules. Buyers also became frustrated with starting offers already being over asking prices, and often competing against 4 or more other buyers at a time. In this neutral market, I expect buyers to have more time to view properties, make educated choices, purchase at fair market value and a be well-coached by their Realtor on negotiations.

For more information, visit the following link from The Ohio Association of Realtors. They have some helpful statistics and explain current market trends: https://www.ohiorealtors.org/blog/980/ohio-home-sales-activity-cools-sli...