Now’s the Time!

Watch on your mobile device >>

Our market update compares this time in 2013 to last year at the same time. With a shrinking supply, there is a smaller number of homes on the market, so we closed fewer homes—57 as opposed to 71, which was a decrease of 19.7%. A sign of strength is the average and median sales prices increased from $107,000 in 2012 to $122,000 in 2013, so prices are up 23.7%. If you’re an investor or first-time buyer, anything around $122,000 is moving quickly. Recently, two properties had multiple offers within two days of being on the market—and they went for higher than what we anticipated selling them for.  

On the other side of the price spectrum, we’re seeing more closings for high-end properties than we have in the past three to four years. Many high-end buyers are wanting to make a move to take advantage of low interest rates, which are hovering around 4%, and they understand inventory is continuing to shrink.  

Low inventory is definitely an interesting factor to consider. Supply is drying up. If we look at what’s happening in the REO sector—the foreclosures are decreasing. Short sales are dropping as well. With all types of inventory dropping comes the increase in price because it’s all about supply and demand. This is good for home owners because the lack of inventory drives the home prices up and puts value back in the economy. On the flip side, when mass amounts of homes flood the market, prices drop. It’s all about supply and demand. Our current situation also has an effect on new construction because when inventory is low and we’re not seeing certain price points, new construction becomes an attractive option. 

So what does this market have to offer the seller? To get top dollar when selling your property, you should take advantage of the low inventory. Now’s the time! When everyone who has been thinking about selling their home puts their home on the market is not the time to dive in—if you want to get the most out of your home. If you wait for all the other For Sale signs to sprout up, you’ll have lots of homes to compete with. At the end of the day, you have a better chance at success if you decide to sell now, instead of waiting until all the Joneses get into the market.

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.     

~

To prepare yourself as a buyer, you can think about what you want out of a dream home so you are ready to decide on a property. Ask yourself questions such as how close do you want to be to your job? To shopping? To your place of worship?  Would you like to have a garden? Do you need a garage? How close do you want to be to a grocery store? Based on all the information you provide, a knowledgeable agent will help you land your dream home in this market.   
It’s a stellar time to dive into the market. Give me a call so I can tell you where to be positioned and how to be successful in this market. Please contact me at (435) 327-2090 or jared@jaredzimmer.com. We’d be happy to assist you.