LUTERHVILLE, Md. — Real estate agent Michelle Pappas is doing a walkthrough on a home for sale before a prospective buyer comes in a few minutes.
“It’s a salt-water pool,” she says, walking around the two-level backyard of the home.
Pappas has been selling real estate for 21 years, riding out the housing market's twists and turns. Especially, in the last six months.
“A lot of changes have happened worldwide that have caused the consumer to be cautious,” says Pappas, an agent with Berkshire Hathaway’s Baltimore Metro Office. “What do I wanna to do? Do I want to leave my current situation? Am I gonna lose my job? Can I afford that next move up?”
While the housing market remains strong throughout our region, Pappas says she's noticed some changes recently.
“The comps aren't quite lining up with the current market conditions,” she says. “So, if you pull the comps for the house that you're going to price, that's not the same market even three months ago than we are today.”
Now, another bend in the road.
Nearly 15 percent of pending home sales nationally fell through in June, up from a year ago, according to a report out this week from Redfin.
Local real estate agent speaks on the current housing market
“We've seen the inspections come back into place,” Pappas says. “That's caused some deals to fall apart in the last month or two. Issues that come up and the seller doesn't want to reduce their price and/or do the repairs and then the buyer is less enthralled with the house.”
Is this all a sign that the hot housing market may be cooling down? Pappas says that depends on where you're looking to buy.
“As long as price, condition and location are all good,” she says, “homes are still moving fairly quickly.”
She says buyers are less willing to jump into a house that's a fixer upper than they have been in the past decade.
“They get nervous when they have to update and take on additional tasks,” she says. “But the move-in ready homes that have updated kitchens and baths, they seem more willing to pay above ask and/or market value.”
Yet, she has good news for those who've been trying to get into a new home.
“With some inventory staying on the market longer, forcing the seller and or their list agent to reduce the price,” she says, “we've seen a lot more price reductions that's helping the first-time homebuyer as well as some other people that are even trying to just go from their first home to their second home.”
