Photo by Francesca Tosolini, acquired via Unsplash.com

Blame the Flippers

Posted August 26th, 2021 under market updates, myths and truths.

The market has changed drastically in the last few years, and I’m not talking about the pandemic. I’m talking about the rise of “flipping” and home staging.

A few years ago, staging was something that was mostly done by people flipping properties for a profit. After renovations and upgrades, the home would be vacant, which was visually unappealing to buyers. Staging solved this problem, making flips some of the most appealing homes on the market.

Now that the everyday seller has caught on to the advantages of staging, it has become a “must-do”. Buyers, conditioned perhaps by TV fantasies, expect a “wow factor” as soon as they walk in the door.

Combine this with the new practice of fixed offer dates (see Market Update at right) and buyers can experience a powerful fear of missing out, leading to inflated offers.

Over the last several years, the “wow factor” expectation, flips that added false value, fixed offer dates that created bidding wars, and, of course, extremely low interest rates (as low as 1.79% for a five-year mortgage) have all combined to push prices up.

As a result, our price structure has exploded to unheard-of levels, with listing and selling prices far beyond the actual value contained in the home.

Eventually, an adjustment will have to happen.

Want to know more about current market conditions? Just ask me, I'll be happy to help.