In 2011 there was a seemingly endless stream of bad financial news. The interest rates were low and the prices on homes were often amazing, but credit was tight and too many people were unable to buy without selling first. This vicious cycle created many frustrated potential buyers and sellers. Last Fall marked a big turning point, though. I usually don’t see a lot of activity right before the Holidays, but buyers and sellers were suddenly raring to go. Since then, the progress has been amazing.
I am now at a point where my inventory of listings is dropping faster than I’m taking on new ones. In 2010 and 2011 this could never have happened. It’s also a wonderful sign that many of my properties have been receiving multiple bids at, or close to, listing price. This means 3 very important things have improved in our local Real Estate market.
- Home prices won’t be sinking anymore – they’ll be rising! Now that we’ve found the price point that buyers, mortgage companies and sellers are comfortable with, demand will begin to gradually drive prices upwards. It won’t be the meteoric rise that we experienced at the height of the local market, but it’s based on a solid foundation and it will be steady.
- Demand will rise along with the prices. Mortgage companies are freeing up more credit and homes are selling. Last year’s frustrated buyers and sellers are eager to get into their dream homes. Interest rates are still at record lows and prices are great, so it’s a fantastic time to buy, but the competition is increasingly fierce. Multiple bid situations are happening much more often now, and this is the exact situation that supports price increases. It won’t be long before buyers start making bids over asking price and the market adjusts upwards accordingly.
- Homeowners with “underwater” loans may finally see some dry land. It’s a terrible feeling to owe more on a home than it’s currently worth, but prices are normalizing. Homeowners will find it easier to re-finance at today’s record-low rates, and those who are waiting to sell can finally get their homes on the market without taking a loss! This is crucial because that inventory is needed to meet the rising demand! If you want to know what your home is worth, call me today for a Complimentary Market Analysis!