In certain price ranges, especially under $200,000, we are experiencing a Seller’s market. Part of the problem, is the shortage of available homes to buy. A good home, properly priced, will receive multiple offers and that drives the pricing.
With falling home prices and higher inventories, most of the public views real estate as a “buyer’s market,” in which buyers hold more of the control and sellers will more eagerly accept lower offers just to sell.
Not so fast, say buyers and sellers. More buyers are finding the sellers in the driver’s seat.
Buyer Young Hammack gave up looking for homes for a while after being outbid on three properties in California. “It’s a false buyer’s market,” Hammack says. “If you think prices are cheap, wait until you start putting offers in.”
Many sellers may be unable or unwilling to lower their home prices — mostly because they may be underwater on their mortgage — so buyers are increasingly finding lower offers than list price denied. Buyers, on the other hand, may be reluctant to agree to a deal if they don’t feel like they are getting it at a deep discount, industry insiders say.
Traditional buyers also are finding even buying a foreclosure can be difficult as they’re increasingly outbid by investors who are willing to pay cash.
“There’s a shortage of attractive inventory,” says Glenn Kelman, chief executive of Redfin Corp. “Customers just keep getting outbid on the houses that they want.”
Real estate professional Steve Capen with Keller Williams Realty in St. Petersburg, Fla., says that the homes most in demand among buyers often don’t require much repair work and are located in good school districts and choice neighborhoods near transit hubs.
“What’s selling is the cream of the crop, and they sell fast,” Capen says. “If it’s not cream of the crop, it’s getting hammered.”
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Posted on April 30, 2011 at 8:39 am Dempsey and Phelps
Trulia.com is an online real estate portal that monitors the average price of homes across the country.
For the fourth consecutive month, price reductions have increased for home listings currently on the market in the United States. The reductions are now at an all-time high of 27 percent, according to Trulia.com
The record-high reductions amount to more than $30.7 billion nationwide. In a press release, Trulia concludes that there has been “a continual and dramatic price reduction increase in many cities that began in June 2010.”
Anxious sellers, watching prices decrease, have gotten aggressive in their pricing. “We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homes sold before the holidays,” said Tara-Nicholle Nelson, consumer educator, Trulia.com.
This is like Christmas coming early for buyers who are hoping to capitalize on a bargain-buy before the year’s end. “Comparatively speaking, we’ve found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009,” said Tara-Nicholle.
Low interest rates and great deals on houses is making this an ideal time for some buyers to purchase a home. However, while buyers may think it’s “their” market, it’s important to remember that if you’re an ill-prepared buyer, you could lose the deal of a lifetime and the home you really want.
Posted on November 17, 2010 at 7:00 am Dempsey and Phelps
If your home is under water, maybe you’ve questioned the value of continued ownership. This article may help ease your concerns.
Is there value in owning a home? The recently released 2010 National Association of REALTORS® Profile of Home Buyers and Sellers brings us some promising results. Today homeowners are living in their homes longer, and after several years of price declines, are seeing rises in home equity gains.
It was only earlier this decade that so many buyers jumped on the investment bandwagon. They bought and sold within incredibly short time frames, and walked away with profits. But as the booms busted, many sellers found they had bought at the top of the market and as prices corrected, they lost more than just dollars. Foreclosure rates skyrocketed. Historically, however, homeownership is a long term investment, and one that brings many rewards.
“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” NAR 2010 President Vicki Cox Golder said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”
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Posted on November 15, 2010 at 6:59 am Dempsey and Phelps