I wanted to do a compilation update/summary of what is being reported and give a prediction as a result. First, the key reports/data:
1. Supply is increasing
2. Rate of mortgage applications is dropping
3. Struggle to maintain property tax base as a result of switching communities
4. Interest rates for home loans continue to drop
5. Entry level homes becoming very competitive
I think this is a lot of conflicting information such as the increasing inventory, but competitive price points. The takeaway from this is that it might take a little more effort. By effort, I mean that if you are a buyer, maybe the goal is to be aggressive and know that you may need to go back and forth with the sellers several times.
There are buyers and sellers, but there is a gap between where the inventory is priced (ie added inventory is sitting on market too long) and what buyers would like to pay. Buyers, give the sellers something to work with by giving them an offer. If they have been on the market for 30 days and haven't seen an offer or lowered their price, you might need to show them where they need to be. Conversely, sellers, if you have been on the market for 30 days and aren't getting the activity you need, it might be time to rethink your number or marketing strategy.
This isn't The Great Recession where there is no equity out there. There are buyers for sellers. There is just a gap between inventory pricing and what buyers want to pay as evidenced by the increasing days on market of the inventory.
I think there might be a correlation with the gap and the behavior of online shopping. This will be a topic for another day.
The great take away from this, which I learned from my original teachers, my parents is that although you may only want to spend 'X', it doesn't hurt to look at properties listed over 'X' because you might need to negotiate them down to more realistic 'X'. On the flip side, take a look at your neighborhoods' current days on market for comparable properties and decide if you want to be a real seller and priced accordingly.
1. Supply is increasing
2. Rate of mortgage applications is dropping
3. Struggle to maintain property tax base as a result of switching communities
4. Interest rates for home loans continue to drop
5. Entry level homes becoming very competitive
I think this is a lot of conflicting information such as the increasing inventory, but competitive price points. The takeaway from this is that it might take a little more effort. By effort, I mean that if you are a buyer, maybe the goal is to be aggressive and know that you may need to go back and forth with the sellers several times.
There are buyers and sellers, but there is a gap between where the inventory is priced (ie added inventory is sitting on market too long) and what buyers would like to pay. Buyers, give the sellers something to work with by giving them an offer. If they have been on the market for 30 days and haven't seen an offer or lowered their price, you might need to show them where they need to be. Conversely, sellers, if you have been on the market for 30 days and aren't getting the activity you need, it might be time to rethink your number or marketing strategy.
This isn't The Great Recession where there is no equity out there. There are buyers for sellers. There is just a gap between inventory pricing and what buyers want to pay as evidenced by the increasing days on market of the inventory.
I think there might be a correlation with the gap and the behavior of online shopping. This will be a topic for another day.
The great take away from this, which I learned from my original teachers, my parents is that although you may only want to spend 'X', it doesn't hurt to look at properties listed over 'X' because you might need to negotiate them down to more realistic 'X'. On the flip side, take a look at your neighborhoods' current days on market for comparable properties and decide if you want to be a real seller and priced accordingly.
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