That is what I want to shout from the rafters with a bull horn. I'm sure we all do. As a Realtor, it is my job to be able to separate out the myth from the truth. I want a marketing piece that speaks to this issue. To do that, I'm looking at three things: 1. Mortgage Rates Today vs. Mortgage Rates a Year Ago 2. Home Sale Prices Today vs. Home Sale Prices a Year Ago. 3. How Many Buyers Are There and Who Are They?
I focused on 3BR 1Bath Homes in Lakewood (an inner ring suburb of Cleveland) and one area just South of Lakewood but in Cleveland Proper. I then added a two car garage so I could get manageable figures. Imagine my surprise when I found out there was a myth at work, at least in these two areas! See for yourself-I'm going to put the Lakewood figures here:
August 1 2005 to October 9 2005 Lakewood
2005: 5.8% interest rate 58 homes sold ave SP: $184,360 ave price per sf: $102
2006: 6.3% interest rate 44 homes sold ave SP: $179,943 ave price per sf: $99
The time on the market (average) increased from 54 to 75 days.
Where am I finding the myth? The same one that has been spoken to in blogs on AR before: it isn't a good time to buy a home. It's a GREAT time to buy a home! Why not spend $99/Sq. Ft. for a home that you would have spent at least $102/Sq. Ft. for a year ago! And chances are that home that sold for $179,943 has a few more things going for it because the average sale price has dropped a bit. Notice I said a bit, not a lot! Do you see a nosedive here? I don't!
To use this data, at least in Northeast Ohio, I have to be specific about areas, because some areas appreciated right through the supposed slowdown while others didn't. I know Cleveland is experiencing a job drain to some extent. But I also know that people in their 20s will want to buy their first home. So getting to my 3rd point about how many buyers and who are they? I am going to spend the rest of this year focusing on FTHBs. I've never done that before. I am tweaking my business plan but I feel it is out of necessity. I know there are empty nesters looking to move back to Cleveland, but I can't be all things to all people, at least not all at once! I have friends with teenage kids and I'm hoping they might like to make a few bucks walking apartment buildings for me so I can get the word out.
I like the idea of providing data in my marketing piece so potential buyers can see the facts staring them in the face: There were 44 three bedroom one bath homes sold in Lakewood from August 2006 to now. That means there isn't a serious slowdown in the market. Curious as to whether you think it's possible to pull twigs out of a rock (er, I mean FTHBs out of their rental units) by letting them know why it's time time to buy a home now.
I feel this information is compelling, and pretty basic. What I'm really wondering is, do you think anyone in the real world will think it's compelling too? I'm thinking that providing data sort of 'show's them the money' instead of just saying it's a great time to buy. What do you think? How are you approaching the ellusive buyers? What are you doing that is different? Thanks! Peace Out - 3C
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