“It’s a great time to buy or sell in Woodlea Manor.” I saw this quote by a local Realtor and wondered how it could be “great” for both buyers and sellers at the same time. Supply and demand dictates market conditions. At times these market forces are in balance but they will never favor both sides of a transaction simultaneously.
Instead of being a cheerleader for the neighborhood, I prefer to present an honest assessment of how I view the Woodlea market. I’ll be the first to admit there are times when it just isn’t advantageous to be a seller.
We have just finished one of the strongest spring / summer markets in recent years. There have been a total of 19 sales so far this year, with a sale to price ratio of 98%. But the fall market has different dynamics in play. Unfortunately this fall is shaping up to be difficult for sellers.
There are currently seven active listings. Sales data from the previous ten years indicates that there will be insufficient demand to absorb all seven of these listing in the next couple of months. These listings are grouped at two distinct price points. Homes with less than 3000 SF are priced in the low 600s. Homes with greater than 3000 SF are 639 to 649. The homes that will sell will be the ones that stand out from the pack with superior appeal (updated kitchen and baths, hardwood floors, etc.) Sellers that don’t have the luxury to wait for a more favorable market will be forced to compete on price. This is a difficult position to be in since it often results in a contract that is well below fair market value.
Pressure on values from rising interest rates may be less likely in the short term. China’s devaluation of the Yuan and the resulting decline in the US stock market has made a rate hike by the Fed uncertain. Prior to the devaluation, tightening of monetary policy by the Federal Reserve was likely to begin in September. Most analysts now believe that the Federal Funds Rate won’t increase until December.
If you would like more information on how the Federal Funds Rate is effecting home mortgage interest rates, give Christine Kern a call. She is one of our neighbors and is a mortgage lender with a local bank. She provides outstanding personal service and would be happy to discuss the current lending environment.
If you like to see some of the homes currently on the market in Woodlea Manor then click here.