I always say Real Estate is 30% numbers and 70% gut feeling. This gut feeling can only come from within and from an agent that not only has been in the business for a while but active in the business.
For the last 2 years Grand Rapids, Michigan has been very low in inventory, Realtors are begging for listings - not because they need the business, but because we have people ready to purchase and nothing is out there.
Right now - TODAY, 3/3/2016 - in most areas we are getting top dollar if not over listing price and multiple offers. Our homes listed at our medium price range are selling for more the $10,000 over asking in some cases.
However now I am seeing the luxury homes selling more and more - and they are not sitting around. They are moving within 30 days. New developments are on the rise and in the works. I am talking to higher end clients about their next purchase and they are ready.
These 2 things tell my “gut” listing inventory will be better this year. As it starts from the top.
It will be like the good ol’ days when we are closing 4 to 5 closings back to back. Because it does roll down hill.
Here is some misconceptions about sales price
So what does this say for the consumer?
Here is my opinion -
The longer you wait to list your home - the less money you will get for it - as more inventory comes up, homes buyers will have more choices, therefore the multi offer/ over asking offer may not happen as much.
As sales rise - interest rates may rise - however we are an election year - so I do not think they will go crazy till after the election - but like the good ol’ days I do think they will rise considerably after the election. However from this chart below you can see even a small increase could change what you can afford or want to afford.
What I learned in my 15 years of Real Estate is to deal with what we know; when we try to beat the game or guess what will happen - we can/will lose. You never know when you hit the peek till it drops and you never know when you hit bottom till it rises.
So my advise to you is to deal with what we know. If you want to sell your home and need every dime out of of the proceeds - then the time is now - if buying a home and you are on a tight budget - the time is now. Because in the end nobody can tell you for sure what is going to happen.