A financial crisis and recovery later, the housing market looks nothing like it did 20 years ago. A new survey from Coldwell Banker explained that the recession not only changed the housing market, but it also changed the way home sellers approach the sale of their home.
The survey looks at approximately 1,500 home sellers and analyzes trends from before and through the recession, as well as the initial recovery years and today.
Below are five charts that show just how much things have changed and the lessons we've learned from the past 20 years.
Homes are selling faster. As National Association of Relators’ Chief Economist Lawrence Yun recently said, “Homeowners throughout the country have enjoyed accumulating household wealth through the steady rise in home values in the past few years.”
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Source: Coldwell Banker
“However, some homeowners are hesitant to move-up and sell because they aren’t confident they’ll find another home to buy. This trend – in addition to subpar homebuilding activity – is leading to the ongoing inventory shortages and subsequent run-up in prices seen in many markets,” Yun added.
Sellers are receiving more multiple offers. For cases like this, here are tips on how to win a bidding war.
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Source: Coldwell Banker
As listed in the article mentioned above, money is a major factor in a seller’s decision, with more people offering full price or more.
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Source: Coldwell Banker
According a recent Redfin survey, 61% of offers written by Redfin agents faced competition from other buyers in March. While it is down slightly from 63% in March 2014, it’s up from 57% in February.
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Source: Coldwell Banker
The number one answer from Redfin on how buyers are standing out is cover letters. Cover letters are becoming commonplace again, with 43% of winning offers using them in March, up 35% from last year.
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Source: Coldwell Banker
