The last several months have seen a changed condition in the real estate market. There is increased volatility in interest rates but in a tighter form. It is not such a big roller coaster now as it is more intense shaking. We recently saw the third largest swing in the bond market since they began to collect that data. If you do need to borrow for a home purchase loan, check in with a lender now. You will see headlines that rates are going up but remember that they are still historically low.
We are definitely closer to the end of this cycle than the middle as reported by Ben Stone of the Sonoma County Economic Board, You can view Stones report here.
I can't help but think that that shaking feeling is more like a coffee percolator when it is going through its cycle. I visualize a gentle hissing and crackling then a rumble and then, hopefully a burst of energy. That is my hope and I have some statistics to back this up.
The market data in Healdsburg and Windsor is running extremely close. My numbers are taken from November of 2008 to November of 2010. I think that this is a good sample and during that period this is what I see.
•v Median price is up 4%, nice and sustainable.
•v Sold homes are up 14%, granted this is up from nothing but March 2011 is going to rock. Get ready now it will be here before you know it.
•v New properties on the market are up 30%, many are short sales or REO's but many are sellers that are ready for the reality of selling at a price that is lower than they want. Many will be replacing their home at a great price also.
•v Expired listings (those that just gave up) are down 15%. This is great news because homes are actually selling in a tolerable time period.
•v Average days on the market are down 24%, this is a huge factor for everyone.
•v Overall inventory is down 41%. Do you all remember when that was the buzz, we have a 30 year inventory! Don't hear as much about that do you?
If you are planning on putting your home on the market I would start that process right after the holidays. It will take more time to get the home ready than you think. You have lived there a while and may be blind to even the minor flaws in the home that may prevent it from selling. Get some direction from your Realtor as to where to focus your energy. If you are on a tight budget do the work yourself and set a schedule and commit to it. Maybe paint a room a week. Good Luck and Stay Positive!
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