Sellers Want Higher Prices This Year - Will the Market Cooperate?
It's that time of year again, and real estate agents and brokers are hearing from new clients who wish to list their home for sale. Along with that seasonal surge in newly-listed properties hitting the market, we're also finding that sellers tend to expect higher prices this year.
Will this year's winners who manage to receive an offer (or offers) on their property be rewarded with higher prices than those realized in 2013? Time will tell. 2013 was the year of the bargain buyer in our recreational and second home market. Some buyers who took the plunge in 2013 paid unbelievably low prices for existing homes on Madeline Island, compared to what those homes sold for in 2006 or 2007.
Many 2014 real estate market factors still weigh in on behalf of the buyer. Mortgage financing is hard to come by in our area, and second homes are a challenge to finance. Not everyone has the cash on hand to plunk down on the purchase of a waterfront home.
We tell prospective sellers and buyers that prices will likely rise as the best opportunities get snapped up. Once the "best buys" in our area become unavailable, there will be inevitable pressure on remaining buyers to make stronger offers.