It happened over night...at least in our area. Almost every listing that our buyers are interested in has multiple offers already on the property. Listings we are placing on the market are receiving 3-4 offers in the first weekend. What is all this nonsense about declining sales numbers?
It concerns me because this was what happened at the beginning of the last housing boom. The idea is that multiple offers present a market value for the home - but the last time around, the banks poor lending patterns were inflating the money available. Last time we had to deal with resetting mortgage rates - this time we have to worry about job loss or lack of income. What can we do?
Well it is quite clear to me...this is one of the greatest opportunities you will ever see to move up or to start creating a wealth cycle in real estate. Homes that are priced correctly will sell immediately. Homeowners who have equity in their home and are looking to move up are finding deals that would have cost them double two years ago. First Time Home Buyers are having to fight with Investors, but the opportunity to start building a wealth cycle are there. I am not ready to declare that we are on an upward trend in housing prices...but I am saying that the list prices of homes are not what they are selling for. The problem is not all appraisers are accepting that homes are selling for more than their list price. Can we remove the declining market tag please?
If marketed properly, a home in the Virginia side of the DC market will sell quickly right now. This time around, can we please keep our heads and not chase after homes just to say we bought one? We wrote a contract on a home last Thursday and I spoke to the agent yesterday - they received 15 contracts on the home...15! So we will have 1 winner and 14 losers who will now overpay on their next contract. This is a prime opportunity for any homeowner who is willing to list their home at the right price!
Jimmy Mulhern
http://www.HomesInVirginia.net
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