Sometimes I insert graphs to make my point about local real estate pricing trends, or interest rate trends or where to spend remodeling dollars. But truly, the best information is local, current, and what I personally experience in the “trenches” selling real estate on a daily basis.
I wrote an offer yesterday for a client who has been comtemplating purchasing a family home for the past 6 months. They wrote a low offer on a home which has been on the market for almost 3 months without an offer. The day I submitted the offer, another one also arrived. Very typical.
Now if you’re a cynic, you would think that there was a mean real estate “god” out there just waiting to put a kink in the offer I just wrote. But honestly, this market is simply heating up to I don’t know what. Another agent just listed a home last week and expects multiple offers above list price and a signed sale contract in the next 2 days. He listed that house at the highest number we have seen in that area for almost 7 years.
We are a solid 18 months past the bottom of the market. Real estate pricing trends are UP. And that’s great news. But what we don’t want to see is a market that moves upward so quickly, that banks and equity sellers dislodge themselves of their properties too quickly. We desperately need increased inventories in order to keep appreciation at a more reasonable level.
If I had a crystal ball, well, I wish I did…. But what I think will happen with real estate pricing trends is that our prices will appreciate rapidly this year. There is such a need for so many buyers to buy homes. And there are many sellers who need to move on with their lives and choose a new place to live. Those people are going to buy and sell rapidly in the next 18 months. Prices will appreciate rapidly. And then, barring national or international disasters, our market will reach a much more even keel. In 18 months the majority of our short sales and bank owned properties will be absorbed and as real estate agents , we will be so glad to never hear of another “short sale” again.
So hang on. We’re in for a crazy ride this year.
“Always Expect the Best”