2013 Will Be Cooking
What will happen in our local real estate market in the coming months? The election results give the impression that we can expect more of the same – low rates and mortgage-rescue programs.
Our inventory is going to keep its same ultra-low appearance because the good buys sell so quickly.
People complain that there is nothing to buy, but did you know that in NSDCC, we have already closed more detached-home sales this year than in previous years, and we still have almost two full months to go?
|Year||Annual Sales||Avg. SF||Avg. $/sf|
Most importantly, there has been a quiet surge lately, which will probably lead to a robust 2013.
The NSDCC detached-home closings for September/October were 40% higher than last year:
|Year||Sept/Oct Sales||Avg. SF||Avg. $/sf|
What will impact the local real estate market in 2013?
- Buyers are much more effective in following the market action – they are noticing houses flying off the market, usually at prices that seem a bit high. Anxiety is rising.
- Buyer anxiety leads to hasty decisions. They jump too fast without properly considering the negatives, and they pay too much.
- Sellers have been pushing higher list-prices all year, and now a late-season price rally is underway. Look at the charts in the right column (scroll down to ‘Pricing Trends’) – the $/sf moving averages have been trending sharply higher the last few months.
The least-informed buyers set the market. They are represented by inexperienced agents who have heard that the market is hopping, but can’t properly quantify it. As a result, their buyers overpay.
Once there is some pricing momentum, buyers start to let their guard down.
It is more important than ever to get good help!