As you know, I like to start my report with something to brighten your day. Here’s this month’s dose of comedic gold!
A doctor can't find a job in a hospital, so he opens a clinic and puts a sign outside that reads "GET TREATMENT FOR $20 - IF NOT CURED GET BACK $100.
A lawyer thinks this is a great opportunity to earn $100 and goes to the clinic.
Lawyer: "I have lost my sense of taste."
Doctor: "Nurse, bring medicine from box No. 22 and put 3 drops in patient's mouth."
Lawyer: "Ugh. This is kerosene."
Doctor: "Congrats, your sense of taste is restored. Give me $20."
The annoyed lawyer goes back after a few days to recover his money. Lawyer: "I have lost my memory. I cannot remember anything."
Doctor: "Nurse, bring medicine from box no. 22 and put 3 drops in his mouth."
Lawyer (annoyed): "This is kerosene. You gave this to me last time for restoring my taste."
Doctor: "Congrats. You got your memory back. Give me $20." The fuming lawyer pays him, and then comes back a week later determined to get back $100.
Lawyer: "My eyesight has become very weak I can't see at all."
Doctor: "Well, I don't have any medicine for that, so take this $100."
Lawyer (staring at the note): "But this is $20, not $100!!"
Doctor: "Congrats, your eyesight is restored. Give me $20"
Looking at current home values, it seems like we’re right back in May of 2014. It’s as if we’ve gone back in time a couple of years, and it didn’t even require a ride in a DeLorean. What do I mean?
Well, I started thinking about where we are in regards to home price comparisons on a historical basis. Prices are falling, so if we compared today’s prices with those of previous years, how far back have we gone? (If that doesn’t make sense, please review the charts on this page after you read this article for a better understanding.)
Pricewise, it would be May of 2014. That’s the point where prices have retreated to as of this writing. This means that if you purchased a home after that date and before January of 2016, there is a chance you can’t sell your home in this market without losing money. Prices have moderated more so in 2016 than in 2015, so that is the reason for the January cut-off on the time frame. Foreclosures and short sales are active in the market. As of this writing, there have been 113 such transactions in the first half of 2016 in Katy.
There is some possibly good news in our real estate market. Homes are selling well, although still down a little from last year, but at about the same pace as May of 2014. The number of new listings coming on the market is finally slowing up. Should this trend continue, home prices might could possibly stabilize but at this point the rate of depreciation seems to be accelerating and the number of buyers in the market is starting to dwindle. Please do not get the term “stabilize” confused with “rebound;” that’s a whole different story.
Many properly marketed homes are still selling in 14 days or less, and sometimes with multiple offers. Buyers are taking advantage of the fact that they’re free to cherry-pick the best homes. Many are even making offers on multiple homes at once. I am seeing some crazy stuff in this market. From a buyer’s point of view, there is no rush to negotiate a counteroffer from a seller, so they are slow to respond -- if they decide to respond at all -- while they watch for other homes they might like better to come on the market. There are so many homes to choose from, the mentality is that if they lose a home, they know another home (or two) is literally around the corner.
All that being said, my team is having no trouble finding buyers. In fact, I am excited that the market is performing so well for our clients. I suspect we will.
The number of sellers since May of 2014 is up 44% in south Katy. That is the negative price driver. We have roughly the same number of buyers as May of 2014 and over 500 more sellers on the market at the same time. Average days on market has increased by 72% and the month’s supply of inventory has increased 55%. Prices are down 2% over May of 2014.
In any case, your home will sell for the highest price when you choose a well-known Realtor with a dynamic marketing program. It’s obvious which Realtors actively market homes and which Realtors sit around and hope for success. Since January of 2015, our listings sell in an average of 24 days on market and at the highest possible market price using our one-of-a-kind Market Launch System. If you want a quick, no-hassle sale at the highest possible price, then do the smart thing and hire us. We will never lock you into a long-term agreement. You can see a partial list of our marketing program features in this newsletter. I invite you to compare that list of benefits to what the other agents share in their newsletter.
Dale, Ross
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