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!