After 5 years of decreasing prices, and seeing some great buys come and go, we are noticing some significant changes in our market. The major changes are Declining Inventory and Multiple Offers. For a while now we have been talking a lot about trying to recognize if we are at the bottom of the market. We have known, or had a strong feeling that we were there, but pin-pointing it is tough. Often you cannot truly identify the bottom until you have passed it. We are now starting to see the Pendulum beginning to swing to the other direction.
There simply is less to choose from now in our market. Many of the distressed properties have been bought up, and many of the low priced "deals" also have been sold. Don't worry, there are still great buys, and great choices, but the flood of inventory has been dramatically cleaned up. I can remember when we had well over 90 SF Home listings in Old Town, and now we are running at an inventory supply of about 55. Don't make a mistake by hesitating when you find the home of your dreams. The good properties, priced well, are now going fast, really fast. Sotheby's listed a great home on Creek Road in Silver Springs, and it went in a couple days, with many offers coming in too late. Like the expression: "A day late, and a dollar short".
We cannot believe it but we are back to seeing multiple offers, and quite often. For the last 3 buyers I have been writing offers for, we ended up in 5 multiple offer situations! Buyer A won on their first multiple offer deal. Buyer B lost on their first one, won on their second. And Buyer C lost on their first and then again lost on their second. That's right, 3 buyers, 5 different properties, 5 multiple offer scenarios. And this is what I am hearing from many other agents as well.
What will you be saying ten years from now, looking back
at today's real estate market?
"Could've! Would've! Should've!"
Now that pricing is so attractive, and now that everyone is finally in agreement that it really is a good time to buy, there are many people jumping back into the game, all at once.
Why is everyone now finally buying again? It's easy, the conditions are finally what everyone has been waiting for. Lets see, the stock market is at a peak again, who would of thought we would see 13,000 so soon? Interest rates are still at extreme lows which means your money is not doing much in savings accounts. Also means you can purchase real estate with very low borrowing costs. Cheap money! Reports of Notice of Defaults declining in numbers is great news that we may be looking to an upcoming end of the massive foreclosures.
Lets summarize: Reduced Inventory - Lowest Prices - Amazingly Low Interest Rates - Stock Market back at its Peak again - National Economic Outlook much Better than Previous 7 Years. Can you really afford to wait any longer????
Sean Matyja - Realtor® / Associate Broker
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