Wow, What a Market!
The first half of 2008 has come and gone. So what’s really happening in the real estate market? I reviewed all of the residential real estate market information for 2008 and compared it to 2007 for the same time period. Below is a graph that illustrates the differences between the market then and the market now. Frankly speaking, when the number of homes on the market for sale has increased, the number of home sales has decreased, and in addition, the time that it takes to sell a home is increasing, you know we are not through this thing yet. So where is the light at the end of the tunnel?
We have a very normal market for homes that are priced under $275,000. A normal market is where the number of months of supply for a given price ranges is less than 6 months. Meaning if there is a 6 months supply of homes in a particular price range, based on current sales it would take 6 months to sell all of the homes in that price range. Homes priced under $275,000 are selling and we are still experiencing multiple offers on occasion. Conversely, we still have a lot of inventory for homes priced between $275,000 to $350,000. That’s where the congestion is. As I have said before, in that price range, sellers are in a pricing war and a beauty contest at the same time. Sellers need their homes to be in the best condition and at the same time have the best price if they expect to sell. Cleanliness is number one. Nothing is more important; it must be clean and smell clean. I also recommend sellers have their home staged by a professional. You only get one chance to impress the buyer, make sure your home is presented in the best light.
The exceptional market we experienced in 2005 has come and gone; today’s market is a tough one. And if you’re reading this, you know that as many as 90% of today’s buyers and sellers start their real estate search online. This is even truer today with the price of gas at $4.50 a gallon. That means that just having your home on a website isn’t enough anymore, you need an integrated online system to attract, cultivate and help these “online shoppers” make purchasing decisions. Think of it as selling your home before selling your home. As real estate professionals we are really selling the house to the consumer on line before we physically even show the home. To attract buyers, having an integrated online system with ALL of the MLS listings, multiple photos, virtual tours, online mapping software, specific neighborhood information with photos, is simply the minimum expectation of today’s buyer.
If you need to sell your home this year, make sure you find a professional to help you. Approach selling your home in the same manner you would if you were looking for a doctor to perform surgery on you or a family member; do some research and pursue the best expert in the field who can demonstrate great outcomes and great results!
