Until this week, Dana Rice, a top-selling Maryland real estate broker, had virtually no showings for the several properties she’d recently listed. Then a few days ago, a nondescript split-level she put on the market attracted a surprising level of interest. Indeed, more than 40 buyers contacted her office to seek private tours of the place.
“Look how fast it turned on a dime,” Rice says about her popular suburban market, where homes are once again attracting multiple offers.
Of course, such anecdotal reports don’t prove a national trend. All real estate is local, and real estate values are slipping in some formerly overheated markets. But in other areas, interest in buying property is starting to spring back and prices are gradually rising again.
“Nowadays, real estate is bipolar -- with the once hottest markets turning cool and vice versa,” says Sid Davis, the author of “A Survival Guide for Buying a Home.”
Some statistics underscore this disparity in markets, says Lawrence Yun, chief economist for the National Association of Realtors (nar.realtor).
He notes that roughly 1 in 10 U.S. markets experienced home-price declines in the fourth quarter. Yet prices are stabilizing or still rising -- albeit more slowly -- in the other 90% of markets.
“Prices are expected to remain stable in the vast majority of the markets due to extremely limited supply,” Yun says.
Obviously, mortgage rates are much higher than last year -- adding to the affordability challenge that makes it far harder for both first-time buyers and trade-up purchasers to fulfill their housing aspirations. But even in fast-moving markets, price gains are more subdued than in 2022.
In December, property prices nationally were 6.9% higher than in a comparable period last year. That’s according to CoreLogic (corelogic.com), an economics firm that tracks real estate prices across the country. Even so, buyers are relieved that in most coveted communities, prices aren’t rising at double-digit rates, as they did during much of the pandemic.
The pervasive inventory shortage is unnerving to many would-be buyers who’ve halted their search. But after adjusting their search criteria, other buyers are resuming their quest.
Here are a few pointers for purchasers in areas where few homes are available:
-- Consider someone else’s junk as your opportunity.
Listing agents often have a terrible time convincing clients to clear through the clutter that packs their place. For that reason, it’s not unusual for a property to hit the market in a cluttered condition -- a definite turnoff to most potential buyers.
But Dorcas Helfant, a Virginia broker and past president of the National Association of Realtors, says smart home shoppers realize it’s possible to get a fair deal on a cluttered home -- assuming they’re capable of looking beyond the accumulations to the property’s inherent structure and floor plan.
“The idea is to picture the house as if it were vacant and then decide if it has the ‘good bones’ you’re looking for. This is hard, but it can be done,” Helfant says.
She estimates that at least 60% of the home-buying public can’t envision how different a cluttered home would look if all the sellers’ excess belongings were hauled away.
One way to address this problem is to ask someone with clearer vision to stop by the place and take a look. This could be an interior designer, a professional home stager or an artistic friend.
“A crowded house can represent an excellent possibility for those who can see past all that junk. And remember, sellers are forced to take their stuff with them when they move,” Helfant says.
-- Don’t rule out exotic decors.
The home-improvement shows on TV are one reason more owners are now experimenting with unusual wall colorings and carpet hues. But the raspberry dining room or purple kitchen the owners fancy is likely to send many prospects away.
“Of course, people are free to paint their entire interior in Pepto-Bismol pink. But they shouldn’t expect buyers to want their house if they do something that eccentric,” Helfant says.
Listing agents tire of trying to convince clients to “neutralize” their homes before they go on the market --which often means repainting walls in a light neutral tone and replacing odd-colored carpet with something neutral.
Just like the cluttered house, the flamboyantly decorated house offers opportunity for people with vision to obtain a property for a favorable price.
“People with the ability to see the potential in this type of a house can really find a diamond in the rough,” Helfant says.
-- Realize that online property photos may not tell the whole story.
Nowadays, most buyers sift through lots of online ads before agreeing to visit a particular place. If they don’t like what they see in the pictures, they’ll decline to visit a house on that basis alone.
But some good-looking homes are simply not photogenic, while others are merely poorly photographed.
Either way, you could be the winner if you’re willing to visit a home that others won’t tour because of unfavorable photos.
“A wonderful and well-priced surprise could await you when you open the door of a house others have missed,” Helfant says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)