- Listing inventory is 10% lower today than 12 months ago.
- The average price of a home in September 2017 has increased 10% since September 2016.
- Average days on the market is down 9.2% of 79 days on the market. This statistic is very price sensitive as $250,000 homes and below are moving significantly faster than $1.5M homes. Know your price range to better predict the time on the market.
- The number of homes under contract has decreased for the first time since June 2017 at 3.2% from one year ago.
What Should Sellers Do in this Market?
- Condition, condition, condition. As prices have risen, the buyer pool is expecting upgrades and better conditioned homes for decor and mechanicals. Before entering the market place, improve the basic areas of the kitchen, bath and service mechanicals of the home.
- Do not get overly aggressive with your price as the home will still need to appraise. It is better to get a fair market value price quickly than try to wait on the market and negotiate to a lower target. This will reduce buyers to your home.
- Remove any barriers to sale, by getting pre-approved for your next home before you put your current home on the market. The mental security in knowing you can purchase your next home gives you a better negotiating position when selling.
What Should Buyers Do in this Market?
- Absolutely, positively be pre-approved for purchasing. Do not change your financial position during the buying process as loan approval is checked and re-checked right up to closing on your new home. In other words, do not quit your job or go out and purchase a big ticket item before closing.
- With the prediction of less appreciation in price over the next 2 years, try to gather enough money for a 20% down payment if possible. This will reduce your payments as to eliminate the use of mortgage insurance and will insulate your purchase price in the event you choose to sell in the next 3 years.
- Consider pre-paying your principle or going to a 15-year mortgage. Creating a scenario of more equity will give you more flexibility down the road.
The market is both EXCITING and CHALLENGING! We love the industry and love helping our clients! Please feel free to call with questions anytime. We are happy to help!