Last week, I attended a continuing education program for agents. Our speaker advised that, "There are 45,000+ listings in the area, 22,500 genuine and the other 22,000 'fishing' for a buyer hoping for a large increase in equity!" At my exercise class earlier this week, one of my friends remembered that two years ago her friend received multiple offers on their home shortly after the sign went up. I advised her that the current market is a far different one.
After a year of "Henny Penny, the sky is falling" media hype, our median home price in most areas of the valley has held steady and/or increased modestly. This in spite of builders offering "incentive packages" for their spec homes competing with existing home sales and a large inventory of homes available for consideration.
Yesterday, one of the agents in our office commented that, "What is still needed in this market is buyers!" No argument there. . .
Economic projections continue to advise that the population of our area continues to increase in excess of 100,000 people each year and they need a place to call home.
We need to take a look at our marketing strategies and have a realistic picture of home values when we work with buyers and sellers. The reality of appreciation in real estate values is that over a 20-year period the typical appreciation is 5 percent per year. Vastly different from the 40+ percent experienced in the past two years or so. Add the fact that interest rates are creeping up from the historic lows, NOW is a great time to buy a well-priced home and many sellers are adjusting and/or willing to consider a reasonable price for their home.
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