How is the real estate market? This is a fairly common question lately, and I hear it often from homeowners who, given their situation, are considering selling now but are also thinking about waiting until the market “gets better”. We are coming out of the petroleum industry bubble – the one that was bringing in thousands of people from all over the world. Now, we are on the down side of that bubble and are shifting to a normal real estate market cycle, just like the cycle we were in for many years before the petroleum bubble took effect. Before we stabilize in a normal cycle, we will experience an adjustment, such as the one we are in. Judging from history, once the real estate market stabilizes, the normal cycle could last for years. Right now, prices are coming off of all-time highs but are still pretty high compared to where we were when the bubble started. Currently, the number of homes selling every month is off the bubble levels from 13-29% and the inventory seems to be up every month. Please see the three year chart on this page. The charts indicate a three-year history of the “price” and “supply and demand” in the Katy area. There’s not a huge decline in the average number of buyers over the last three years, but the numbers are definitely down. Prices are still up about 6% over 2013 levels and the number of sellers is up 39%. The two-year chart indicates neutral growth in prices since July 2014. Historically, from 1990 until 2011, prices in our area were stable. During the bubble, the appreciation rate averaged 9.1% annually for about 4 years. Home prices have settled back to where they were about one year before the bubble popped and, while not at all-time highs, they are still much higher than they were when the bubble market started. Keep in mind that it took a price of $82, per barrel of oil, to start that real estate bubble and $100, per barrel of oil, to keep it going. When do you think oil will be back at $82 per barrel? Well, that’s likely when we will move back into feel good real estate territory. In the meantime, people are still buying and selling homes. For myself and for our clients, what matters is results. Every member of my team is good at is creating solutions for our clients. We are still attracting dozens of buyers for our sellers every month and we are maximizing our clients sales prices using our unique processes. In fact, we are attracting multiple offers on many of our listings. Getting back to the question, here’s my answer: The market is better. It is a great time to buy a smaller or a larger home because there are so many from which to choose and the interest rates have again dropped to near historic lows. I have been a Realtor in these conditions before and I will sell your home for 100% of the market value in days or weeks, not months. My proprietary marketing plan is often generating multiple offers within days. If getting multiple offers on your home and selling for 100% of full market value, while saving thousands of dollars in real estate agent fees appeals to you, then call us today. Remember, you are never locked into a long term agreement with us and we have many money saving opportunities to fit your situation.
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