I love talking about real estate.
And there is never a shortage of people asking me about the current market. Everyone wants to know.
The answer is complicated because it depends on what “market” you are asking about. Are you a buyer? A seller? What price point? Location?
In general, homes are selling fast. Really fast. Unless you are talking about the luxury market (let’s say $400k and up). Those homes are taking longer to sell.
Homes between $100k and $250k in many neighborhoods are selling in days if not hours. And many with multiple offers.
How is this market compared to last year?
Compared to this time last year, there are FEWER homes on the market. And home prices (not including new construction) are up 9%. Yes, 9%! If you are a seller, that’s great news. If you are a buyer, it means you have fewer homes to choose from and homes are more expensive.
And I don’t see things slowing down anytime soon.
Advice for buyers...
If you are looking to buy in 2018, expect a lot of competition. To put yourself in the best position to buy the home you want, do your homework. You need to be pre-approved, you need to understand the buying process, you need to be comfortable acting quickly, and more. I do a one hour home buying consultation with all new clients so please contact me if you want to buy in 2018.
Advice for sellers...
If your home is in move-in condition and priced right, you should expect it to sell quickly. Sometimes, in a day with multiple offers.
But (and this is important) if you price your home high and it's in poor shape, it can sit for a long time. Just because it’s a seller’s market, doesn’t mean you can throw a sign in the yard, price it at whatever price you want to and expect it to sell quickly. You never get a second chance to make a first impression. Make sure you make an AMAZING first impression.
If you are looking to sell, contact me and I can tell you about my proven approach to selling.
One thing that could impact our current housing market is interest rates.
At the beginning of the year, the average 30-year mortgage rate was 4%. Today, it's 4.46%. That’s a pretty big jump in two months.
Borrowing is getting more expensive. This may help keep prices down and it might also limit the buying ability of some buyers. Economists are thinking interests rates could approach 5% in 2019.
This year is shaping up to be as crazy (if not crazier) than last year. Homes selling quickly and for higher prices.
In this type of market, it’s extremely important to work with an experienced real estate agent. If you are a buyer, you need someone that can put you in the best possible position to purchase a home. In a multiple offer situation, there are different strategies that can make one offer better than another. I’ll write more about this in my next newsletter.
And if you're selling, I can help you prepare your home for the MOST success in this market. I was able to get 17 offers on one of my home listings last year. Yes, 17. And I can do it for your home too.