This week ending 5-4-14 Real Estate Market Trend Report by Jim Miner @ South Scottsdale shows just how weak our real estate market in #SouthScottsdale and Maricopa County has been over the course of the last year.
As a Buyer or a Seller a weak real estate market should not be something to run from rather if one is properly equipped with the right tools a weak market often provides a window of opportunity. The trap the Buyer typically falls into is the one of trying to pick a market bottom as well the Seller is always trying to pick a market top. I have seen the two tools that buyers and sellers use most often are "what the neighbor said their home sold for, and the valuation by Zillow". The bottom line is both of these tools have almost a perfect record of being incorrect. In the included video a tool called "The Contract Ratio" is introduced and has a very good track record of identifying short-term real estate market trends.
So if one is a Buyer, having the knowledge of the strength or weakness of a local market would provide the ability as to how aggressive one could be with a Purchase Offer Price and the asking of concessions. If one is a seller, having access to the "Contract Ratio" could be useful in determining the listing price of the home and it would help in knowing how long one should hold to their price. As an example, if the "contract ratio" is weakening a seller would not want to hold very long to their original listing price (assuming one priced at the market) because they will follow the market down and that will reduce their net return. Now if one is a buyer the opposite could unfold, as an example, if the "contract ratio" was in an uptrend and the buyer's modus oprendi was to always submit an offer 5-15% below the market price they will be unsuccessful in acquiring a property because the real estate market trend is moving away from them and that can very expensive.
Take a few minutes and think about what this video, 5-4-14 Real Estate Market Trend Report by Jim Miner @ South Scottsdale, is showing you. Unfortunately for those of you in different areas of the country you probably do not have access to this tool which I use here in South Scottsdale and the other cities in Maricopa county. Michael Orr who works at Arizona State University and prepares the Cromford Report has been sought after from many of the major cities but he has made the decision to just focus on the local area.
Twice a week I try and bring to you the major points of this report, however unless you are a client of mine I just don't have time to get into the entire report. If you are located in South Scottsdale or other areas of Maricopa county ask your Realtor to share and explain this tool or just give me, Jim Miner, a call at 602-345-0433 or email me at email@example.com and we can open up a dialog. You can always go to my facebook page at "Jim Miner - Arizona Home Help" and "like" the page and we can begin a line of communication.
Having trouble viewing this video go to, http://goo.gl/sWt9O3