Guard-gated sales for August were up 23.3% over July, with 53 closed sales and 96 pending sales at the end of the month. For the last couple of years, COVID-19 had put most summer plans on hold, so just about everyone was excited to go somewhere. This may have contributed to midsummer’s lull in sales. However, the primary cause for August’s increase in sales is market correction. In the guard-gated communities we focus on, there were 129 price reductions in August, which came from 101 properties. This means some sellers lowered their list price more than once.

To determine current market conditions, please reference the absorption rate, which is a measure of supply. Generally, a 6-month supply is a regular market with stable pricing. As the absorption rate drops below 6, it becomes a seller’s market. We are now seeing an inventory of 9 months or more in most price ranges, which tells us the scales have shifted in favor of buyers. 

The market has been white hot for the last two years. Although some sellers don’t need to sell, there are those who do and who are willing to do what it takes. This is why we are starting to see an increase in price reductions. These sales will eventually become the new “comps.”

For the homes that do find a buyer, keeping the deal together is of critical importance. One of the leading causes for buyers to cancel are issues that come up in a home inspection. If you’d like to ensure a smoother escrow experience and increase the odds of your sale going through, we recommend the following: Get your HVAC serviced, roof inspected/repaired, and any issues with your pool fixed.

The Rob Jensen Company is comprised of experts; we know how to handle the competitive landscape and make your home stand out. If you’d like to sell, we’d love to help. Just call or email us.