We have been hearing from agents around the country that activity has picked up and they are seeing a shorter time on the market and stronger sale prices in their real estate markets than they have had in the past! So how does Rochester real estate fit into this? Here's the scoop from the President:
As I outlined in my news conference in January as we were presenting the 4th quarter stats, we have now had 6 consecutive quarters with an increase from the same quarter of the previous year They are:
3rd Quarter 2011 - 8%
4th Quarter 2011 - 5%
1st Quarter 2012 - 9%
2nd Quarter 2012 - 11%
3rd Quarter 2012 - 7%
4th Quarter 2012 - 9%
What is significant in these stats is the 3rd and 4th quarters of 2012 were good increases over the quarters in 2011 that had shown good increases too!
Throughout this climb up out of the trough we had slid into has been the low inventory that we are also experiencing. When you have increased sales activity but low inventory, it results in an increase in the median home price which we are also seeing. For 2012, it was an increase of 4%.
Over this climb up has been some definite changes in the way buyers and sellers operate. First has been the huge presence that Zillow and Trulia have in the marketplace! No doubt about it! The public has grown to view them as their place to go to to see properties and determine value. To put it differently, the public is more knowledgeable and has the information about properties upfront. Gone are the days when the real estate agents were the sole owners of the data!
Another change has been the impact of HGTV on the public. They expect homes for sale to be in top notch shape. This has put tremendous pressure on sellers to prep their homes prior to putting them on the market. So what is happening is this, buyers are seeing homes in much better condition than was the case years ago.
So how does this impact the Rochester market?
Well, first of all, we are seeing multiple offers because of the low inventory. This will drive the prices up, but it also frustrates the buyers in the marketplace in the areas of high demand!
Secondly, it should aid in re-establishing a strong consumer confidence in our real estate market which will help to ease our low inventory problem.
So how does a real estate agent cope with this new marktplace?
Easy! Just tell one's buyers and sellers the truth about the market and then tell them how to meet the market with their best foot forward!
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