The Gellman Team Update on our Local Market
What’s been happening in our real estate market over the last two months?
Right now, we’re seeing a softness that we haven’t seen in previous years. We’re attributing a lot of that to the insecurity of what’s going to happen next, both politically and economically. Obviously, with the presidential election, there’s already been a lot of major changes. Some of them have been positive, such as the stock market going up. Some of them have been not so positive, such as mortgage interest rates increasing a half of a percentage point. As to that, we’re currently sitting at the low 4% to 4.5% range.
That being said, we’re also seeing a softness in inventory right now. A lot of sellers are holding off until after the first of the year, either due to the holidays or the insecurity that I already mentioned. We’re encouraging our sellers to get their homes on the market, especially those who have homes with what we call a “wow, but” factor. Wow, that’s a great home, but it has a steep driveway (or a shallow backyard, etc.)
That “but” factor is really going to cost those sellers dollars, because buyers will negotiate off of them. It's a great time to sell those properties because the inventory is low. We project that the latter part of December and the early part of January will be a little quieter. We also believe that buying activity will pick back up in February or March. As buyers pick up, we’ll also see a significant increase in the amount of inventory.
"Now is the time to sell your home."
In short, if you want to sell your home within the next two months, get your home on the market immediately. There are fewer buyers out there, but they’re far more active and not as picky.
As always, preparation for your home sale is critical. You have to get the home show-ready by removing clutter, repainting wherever you need to, refinishing any damaged flooring, etc. Throughout 2016, we’ve seen buyers hesitate about buying any home that has had deferred maintenance.
Taking advantage of all the factors I’ve mentioned and preparing your home properly could ultimately net you more money. The increase in the stock market is allowing buyers to cash out with more money for a down payment, allowing for the purchase of more house.
If you have any questions about buying or selling real estate, don’t hesitate to call, email, or text me. I hope you have a fantastic holiday season, and I look forward to hearing from you!
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