Market Watch April 2014
Winter is over. Spring has arrived. For real estate specifically it has been a rough few months. The big question is what happens now? Although 2013 was a fabulous year in our market, the market really slowed at the end of October. The market did not compare favorably to the preceding year’s sales figures over the winter months. This was not just a local phenomenon but was consistent on both a national and statewide level. Nationally pending sales have declined for 6 of the past 7 months when compared to the preceding year. Statewide the story is similar. In February alone pended contracts were down 11.7% and closed transactions declined 13.1% compared to February of last year.
I believe that there were two primary reasons for our winter malaise. The first obvious reason was that winter nationwide was bitter cold and snowy. Clearly real estate is seasonal to some degree but extreme temperatures clearly hampered sales. I know in our area many buyers are not inspired to drive around town traipsing through the slush to look for their new dream home. The second reason which I have mentioned in previous letters is low inventory levels. We simply do not have as many homes listed as we have historically had.
So what happens next? Now that spring has arrived, weather is no longer an impediment, and that alone will contribute to increased sales. Secondly, sellers who have been contemplating listing their homes will begin to put more homes on the market. Another positive factor is that when the market slows there are always some potential buyers who delay, but don’t cancel their plans, creating some pent up demand.
I have already seen evidence of this around my office. My associates have been busier and we have seen several examples of multiple offers on some properties. In addition sales prices, even when the number of homes sold was declining, have continued to increase. I am confident that we will see increased sales activity over the next few months.
The first piece of advice I would pass along is that if you have been considering selling your home, get it on the market now so you don’t miss buyers who are starting to look. The second piece of advice is to make your search as easy as possible by searching first at FCTuckerEmge.com. The temperature is always 72 when you are at your computer and we have the easiest search on the web. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com
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