To all our cherished friends, neighbors, family and clients
– we are so proud to have been able to work with you and be a part of your
lives! As we end this year and turn to the exciting time and events that 2013
holds, we just wanted to take a moment to thank you for all that you bring to
our lives.
We have some really great plans in the coming year to bring
more success to all your real estate endeavors. And with each transaction that
makes it to the closing table in the coming months and years ahead – we know
that there will continue to be new and exciting things to follow for all of us.
On behalf of the entire group – Happy Holidays, Season’s
Greetings, Peace and Joy!
We are definitely seeing a plethora of lengthy reports about the real
estate market these days, whether on a national level or honed in on a
particular local area. But the fact remains that the market is in an
unstable state and keeping track of indexes, watching over home sales
and how they fluctuate from month to month or year over year, is giving
us a glimpse into what to expect. It is these very measures that
allow us to foresee the greater trends that exist so we can act
accordingly. Here, according to which side of the transaction you are
on, are some happenings in the industry and what they mean to you as a
home buyer or home seller.
Buyers Don’t Beware
Buyers Trend #1 Foreclosures have slowed down.
For the most part, whatever foreclosures that had flooded the market
have either slid into transition stage, where the banks are reviewing
documents and going through the sometimes lengthy review process that
comes before accepting applications to purchase a foreclosed home – or
there are fewer properties available. There was indeed a flood of
distress sales in the market that occurred in the recent past but banks
have now shifted away from foreclosures and they are favoring short
sales instead. Short sales are a far better option for many reasons, but
the two main benefits remain 1. Homeowners are either able to retain
some of their credit while buying back their home at less than its
current value and 2. Banks are spared the added expense and risk that
goes along with foreclosures.
Buyers Trend #2
Prices remain historically low.
One thing that has not changed for the duration of our current
recession, even as we have headed into a double-dip economic downturn,
is that as a result home prices continue to be at their lowest level in
years. In the S&P Case-Shiller Home Price Index,
it is indicated that housing prices these days rival a 30-year low and
they seem to be hanging there in place as the market remains
unsettled. Even though prices are as low as they are, the fact remains
that these transactions that are taking place are happening with regular
homeowners and simple sales deals, rather than banks for foreclosure
sales.
Buyers Trend #3
Rates are still at an all-time low.
Interest rates, depending on the
day, are still as low as a little under 5% for the average 30-year
fixed rate mortgage loan. For potential homeowners and those who want
to move up or seize the opportunity to move into a luxury residence,
this could not be a more perfect time to invest in that property. For
those people willing to remain in the mix for the long haul, the
current market trends will predominantly not affect them in terms of
return on investment. The market will indeed bounce back, whether 6, 7
or even more years later. And when it does, you will end up having
much more house (in terms of value), while still paying that very low
interest rate.
It’s a Small (Selling) World After All
Sellers Trend #1
There are lots of buyers looking to buy.
When you are selling your property, the more the potential buyers the
merrier. With the number of buyers who are looking for a great deal
your chances of selling are a lot better these days and if you have a
home that has unique or upgraded amenities you can further avail the
opportunities that will come with having that edge over other sellers.
Sellers Trend #2
Inventory is down.
With the number of pending sales in limbo on a day-to-day basis,
inventory figures are relatively low. This is great news for people
looking to sell their properties, because that translates to more
buyers for the taking and the ones that do come looking at your
property are far more impressionable.
~
To sum things up, right now is a great time to be a buyer – especially
with all the incentives out there ranging from super low interest rates
to housing prices that are closer to those from 7 or 8 years ago. If
you can afford it now, buy now.
As a seller, the main advantage you have these days is that there is
less inventory for those buyers out there looking for a deal now –
which means you have the edge and better chances of selling that
property.
The trends keep fluctuating a bit here and there but the major things
remain: low rates, low housing prices, low inventory. And now is the
time to seize the opportunities that lie within these trends.
Many sellers are unsure whether or not to wait until next spring before
listing their home. The confusion comes with a combination of age-old
schools of thought that predict the spring season as being almost the
only season for homes to sell successfully. Not true.
A lot of homeowners are under the impression that homes are not selling
at all, whereas in our own experience, time and again we continue to see
complete opposite results. So much so, that we are defying the
myths of never ending days on market statistics with many properties
going under contract in approximately two weeks. Here’s why.
There are so many buyers in the marketplace right now that are eager to
lock in the phenomenal interest rates and market conditions that
continue to allow a very significant amount of buying power. The
interesting thing is that while it is a strong buyers’ market in that
sense, sellers are still enjoying an edge with the lower inventory that
comes with it being this time of year.
Regardless of which side of the fence you are on, either way you look at
it the market is strong. People are out there buying. If there are
fewer homes available on the market, then that only means that there is
less selling competition. This of course translates to top dollar and
incredibly quick, hassle-free transactions in which everyone comes out a
smiling winner.
So to answer one of the most frequently asked questions I am getting
these days, it IS a great time to sell your home. Sure, you could wait
till spring. But keep in mind that so will countless other sellers and
by the time springtime blooms are back out, so will equally as many more
“for sale” signs, competing with you.
By listing your home now, you can harness the power of the buyers that
are striving to find that perfect property before the holidays kick in.
Contact us today if you’d like a custom, home valuation report detailing
exactly what we expect your home will sell for in today’s marketplace.
Our team looks forward to hearing from you and helping your real estate
goals come to fruition.
