If you’ve been following the housing market over the last few years, you’ve probably noticed some dramatic shifts—prices skyrocketed in many areas shortly after 2020, then started cooling off and correcting in 2023 and beyond. Whether you’re buying or selling, understanding these market dynamics is crucial to making smart real estate decisions.
What’s Really Driving the Market Change?
Many markets, including places like Austin, TX and parts of Arizona, saw home prices nearly double after 2020 due to low interest rates, high demand, and limited inventory. But now, with rising interest rates and more inventory available, the frenzy is calming down.
What’s important to understand is this: the market is correcting itself. This means homes that were once overpriced during the boom are now adjusting to reflect current demand, affordability, and buyer expectations.
The Difference Between “For Sale” Listings and Sold Comps
One common mistake sellers make is pricing their homes based on what’s currently listed for sale rather than what has actually sold recently. Active listings show what sellers hope to get, but sold comparables (comps) show what buyers actually paid.
Focusing on sold comps gives you a realistic picture of the market and helps set a competitive and fair price.
Why Pricing Based on Sold Comps Matters
- Avoid Sitting on the Market: Overpriced homes tend to linger unsold. In some markets, especially at higher price points, homes can stay listed for months or even years if pricing isn’t aligned with buyer expectations.
- Attract Serious Buyers: Fair pricing based on sold comps invites buyers who are ready and willing to make a move.
- Sell Faster: Pricing competitively often results in quicker sales, reducing the stress and cost of carrying a property long-term.
- Reflect Market Conditions: Interest rates, buyer demand, and economic factors all influence what buyers are willing to pay. Sold comps account for these realities better than just listing prices.
Don’t Forget the Value of Your Yard and Features
In markets like Arizona, a well-maintained yard can be a major selling point. Outdoor space matters more than ever, so highlight those features. However, also be honest about your home’s interior features. Even if the house is clean and well-kept, outdated or builder-grade finishes may affect the perceived value.
Lessons from Austin: Price Realistically to Sell Successfully
In Austin’s recent market, many homes have struggled to sell because sellers priced them based on past highs or current listings, not on recent sales. Meanwhile, sellers who priced homes according to what’s actually selling—considering interest rates and buyer demand—were able to sell quickly.
If you’re thinking about selling your home, take the time to analyze sold comps carefully. Work with a knowledgeable real estate agent who understands current market trends and can help you price your home to sell. The market may be cooling, but a smart pricing strategy can still get your home sold — and at a price that makes sense.
If you’re considering a move or investment and require a trusted Real Estate Broker, we’re here to assist you. Contact us via email at TEAM@McDanielCallahan.com, complete the form below, or give us a call at 925-838-4300. We are ready to provide expert guidance and support for all your real estate needs. Terry McDaniel DRE License #00941526
Find a Broker™ 