We all know that the holiday season can be a little bit crazy. Crowded malls, no parking spaces, and too many parties to attend can take our buyer's minds off of their home searches and convince sellers to wait until the "spring market". Be aware though, the Black Friday of real estate in Montgomery County will be here sooner than you think and you had better not miss your small window of opportunity.
The perceived slow down in the market that is bringing back ghosts of real estate markets past, but be assured this is a typical seasonal adjustment. Those sellers who think they should wait until spring time with warm weather and blooming flowers in their gardens may miss the hottest market streak in recent years. Aided by the tax credit extension with increased income limits, the inclusion of non-first time buyers and low interest rates, the floodgates are preparing to open.....in January!
First time home buyers who missed the previous deadline in November will not be making the same mistake again. They have learned that contracting short sales may tie them up in a realm of uncertainty regarding pricing and the all too precious closing dates, so it's critical to start early. Move up buyers who were "considering" taking advantage of low prices and great rates may have just been pushed into taking the leap toward the home of their dreams.
The holidays are a great time for new buyers to enter the market. They meet with their families and discuss their New Year's resolutions and decide that, yes, this will be the year that they buy a new house. After the gifts are opened and the January 1st hangover subsides they are ready to get started. Even in the down markets of the last few years, I have always encouraged my sellers to list their homes in January. There is generally less inventory and therefore reduced competition. By the time April and May, roll around the number of homes on the market has increased drastically and only the best of the bunch will contract quickly. Those that do not sell will become stale for the summer when things slow down again.
This year will be no different, aside from the fact that to qualify for these tax credits a buyer must contract their new home by April 30, 2010. If the average buyer takes 4-8 weeks to find their home this means that they will start looking earlier. Sellers, even though the market is improved, statistically as of today, our year average for "days on the market" is 107 (or almost 4 months). Sellers, please do the math and ask yourselves where you are in the process of listing your home. We do not know what is going to happen to our market after the tax credit expires or how unemployment levels are going to affect the demand for homes. So if you are even thinking about selling your home next year you need to make time in your busy holiday schedule to prepare your house for the market in early 2010.
If it's ready, let's get it on the market now for those buyers who heed my advice to shop early. Yours may be just the house they are looking for. If you know you need to do a few things, I can give you some pointers. If you read my previous blog Whoever Said Real Estate Was a Dirty Business Was Right, you know I've seen it all. I can tell you the difference in your likely selling price f you make a few improvements vs. not doing them. (Going back to my blog again, cleaning is not optional! Buyers should not have to have to put on HazMat suits to view your home.)
Sellers, don't miss your Black Friday!
P.S. - Buyers, if you know that this is your time, let's make a plan. There are home available now, but realistically, given the new tax credit for repeat buyers, more homes you might like will be on the market soon. Also, it takes most people while to find the right home for their current stage of life. Once you start looking, I will be on the lookout for homes that you might like.
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Courtney Donato-Griffiths can show you the perfect house in Potomac, Gaithersburg, Rockville, Kensington, Bethesda, or other Montgomery County locations and is ready to discuss all the scenarios of the new credit with you. Whether you are buying a Montgomery County home or selling one, Courtney is your local Montgomery County specialist.
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