Navigating an Ever-Changing Market

Whether or not you're in the market to buy or sell real estate, you may have noticed all of the news reports about an increase in property values in 20136, prompting sellers who may have been under-water just one-year ago, to sell. There has been a rash of properties receiving multiple offers, many going higher than the list price, as well. I have now seen another trend...houses coming on the market grossly over-priced! These homes may have been on the market as much as $100,000 less a year prior....And now, they are listed, and they are sitting.... This can lead to a lot of buyer and seller confusion. The buyers are wondering what happened to their ability to afford in the same neighborhood they are now priced out of....And sellers may wonder what happened to their sudden increase in perceived equity. How can we tell where a market is? Usually the sold comparable properties are a great indicator, as well as the percentage of inventory sold vs. listed, the number of days on the market and how many homes see a price reduction, or multiple offers. The indicators to me are usually what helps us see where a market is headed. There are no crystal balls available to us REALTOR's, there are projections from many directions...but, as I see it we are in for a slower price increase this year vs. last. In some areas, houses have one up over 25% in the last 18 months. The real proof of if those prices are accurate is if they will sell. In 2012 I saw the ramp up of activity with multiple offers on properties that were fairly priced, and suddenly people were ready to go over asking price. The trend continued to grow in 2013, and in the later months, it started to wane. The real estate market usually slows down during the November and December months, although it stayed steady in 2013, the price increases were not as rampant. Enter the new year, and the beginning of a new spring selling season. New listings are popping up and I am seeing a lot of homes priced more than $100,000 higher than they would have been a year ago. I have yet to see a good closed comparable in the market area, but as usual, time will tell. My advice for sellers right now? List your home based on actual sold comparable properties and condition of your home. Do not reach into the future and guess what you think your home may be worth in a few months. For buyers, don't be afraid to keep looking. The right house will show up, and as long as you are ready to make an offer when it does, you will have your home this year! The key is being prepared with your pre-approval, current proof of funds, and any possible contingencies handled. If you have any questions on what you think you may qualify for as a buyer -- or if you have questions about what your home may be worth as a seller, please contact me. I will take the time necessary to give you the best possible scenario! Happy House-Hunting - Or Home Selling!!! Stacy