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As
your real estate resource center, we’re committed to keeping you up to date on
changes in the market—and what they mean to you. There’s reason to
believe the real estate market is poised for strong growth in 2013. I
recently attended a “State of Real Estate” conference that featured a lot of
positive news. Here I’ll give you a brief synopsis.
The
market hit bottom in the beginning or middle of 2012. Currently, the
local inventory is 3.5 months, meaning that if you put your home on the market
it would take on average 3.5 months to sell if you position it properly and if
it’s priced at less than $500,000. Most homes are selling in a week and
getting multiple offers. As far as prices go, the median price is
$260,000. As median price points go up, inventory goes up as well.
What
does this mean for the buyer? When a home that you’re interested in hits
the market, plan to see it as soon as possible and make the best possible offer
that’s at an appropriate price point for the seller. Remember, homes are
moving quickly. If you hesitate, the property could be gone tomorrow
because others will be making offers.
Now let’s break down the market. Most of the sales—63%—are equity sales, 24% are short sales, and 12% are REO's Bank-owned sales, but this number is dwindling, which is positive. The reason? Short sales are easier to do because the banks today are much more responsive to us and our clients, so these sales are getting done a lot quicker.
If we look over the past seven years, buyer confidence is definitely at an all-time high and, thankfully, mortgage rates remain historically low. The mood is great! And for the most part, sellers have lowered their expectations to be more consistent with the market so we’re seeing a lot of movement.
For those looking to sell a home for more than $500,000, it will take longer than 3.5 months. Sales are slow in the high-end market. Based on the current inventory, homes in the $600,000 to $800,000 range is six months; $800,000 to $1.2 million is 18 months; $1.2 million to $3 million is 24 months; and above $3 million is two to five years. So if you’re considering selling a luxury home, be realistic with your expectations of the market and price your home to sell, not just to list. If you are patient, you will sell your property and can reinvest in a great opportunity on the purchase side.
To build a strategy to market your home or find the home of your dreams, please contact me at (760) 774-0105 or dave@teamkibbey.com. We’d be happy to assist you.
