A Smile, A Tear, Home Values Rising!

By
Real Estate Agent with Keller Williams Realty

What do you get with Multiple Offers?

 

 

Yes, I am in that kind of market.  We have taken off and are white hot with low inventory in our affordable level housing.  Buyers are lining up to view homes and it is like Black Friday scene as buyers try to view a home that just was placed up for sale that day.  Crazy, exciting and frustrating.

The smile is from the seller who delights with the activity.  Homes that were once felt to have challenges like a small backyard, small bedrooms, etc. are receiving star treatment and quickly going under contract.  The price level in our area from under $200,000 (we have very affordable housing levels in McKinney, TX) has a supply of inventory of about 1 month.  They go like hotcakes! 

Buyers end up shedding tears from frustration.  Making a full price offer with "clean seller beneficial terms" just is not enough.  Homes top over the price range and reach heights that appraisers will moan over.  Multiple offers mound up and agents send letters from their clients to the seller enclosing darling family photos, an attempt to tug at the heartstrings.

With the huge demand the home values from once stable levels are escalating - mostly at a rate of 7 to 8% a year (price level under $300,000).  The fray to get a home began in late fall 2012 and it has been Christmas since, full of surprises and gifts to the sellers.  Home values are on the rise - celebration!  We have had little to no appreciation in our area since 2000 in our community - values have remained stable.  We had a lot of new home construction that kept the preown market prices holding.  This actually gave us protection during the 2008 downturn.  This price level of home maintained value and did not go down.  While most of the country was crying the blues Collin County Texas area was a poster child of example.  We became the pulse of test for the nation.  As economist have alluded - what we experience the other areas in our nation will follow.

Happy multiple offers. They area a challenge, a reward and a heartbreak!

As the nation looks to our area (Dallas-Ft. Worth) as a leading indicator of what is coming for other parts of the nation you should all be smiling soon!

 

Comments (4)

Teral McDowell
Referral Patners LLC - Murphy, TX

hi Connie, we are dealing with that same market over here in Plano and it can be a bit frustrating for buyers. I was out previewing in the rain today but so glad for the rain I didn't mind :) btw, I saw my first sold with a cool $10K over list in that neighborhood my "Meet the Buyers" are looking.

May 15, 2013 06:47 AM
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale
Connie, a one month inventory of homes is truly amazing! It seems that Texas has done quite well during the hard economic times, and your community seems to be leading the way. Enjoy the wave!
May 15, 2013 08:13 AM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Connie-The worm has turned in lots of communities. Good news for Sellers. I'm wondering how the FHA change will affect the market. MI forever will reduce the appeal for FHA loans for some, but if their credit scores is an issue, I guess they'll just have to suck it up until they can refinance to conventional.

May 16, 2013 04:57 PM
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

HI CONNIE!  They certainly can be heartbreaking - in a situation right now where it is so frustrating for the buyers!

May 19, 2013 09:27 AM