Archive for March, 2011

The ebb and flow of the real estate market is fascinating to me and calls into question “timing the market”.  What is it about spring that causes people to move into a decision now that they couldn’t make in February?  Who knows, but what I do know is now is a very good time to sell if you have the equity to price right.  Inventory across several market categories is lower than it has been in a long time and buyers are scraping for good deals.  Quick tips - Sellers: be aggressive (low) with your price – you’ll probably get more than one offer and with good terms.  The market will bid it up if it is too low.  Buyers: move fast.  The best deals are done in 2 days – are you prepared to move with lightening speed?  If not, it will be hard to lock up the best deals available.

This time last year the real estate industry was celebrating the return of the buyer as our transactional volume spiked as the expiration of the tax credit loomed.  We didn’t know how much of that was due to the tax credit, but we soon found out when the volume fall through the floor into the summer – and stayed that way – until now.

This spring is also proving to be busy, but what is more exciting is the fact we don’t have any programs artificially propping up the real estate market.  Instead, it seems real buyers are buying for real life reasons – which is hopefully a sign of things to come.

Houses from $400,000 to $800,000, near the Metro, are moving fast, yet condos are still moving relatively slow.

We’re not out of the woods yet, but perhaps we’ve turned a corner.  Stay tuned as we move through 2011 and see if this is a blip on the radar, or a new trend.  Keep an eye on interest rates.  They have been so low now for so long, they seem normal.

In some well deserved good news, our market received a nice bump in confidence by the latest article showing a gigantic jump in pending home sale numbers.  Any way you look at it, this is great news for our market and reflects the on the ground frenzy we are currently experiencing.  Pending home sale volume increase doesn’t necessarily translate into value increase – at least not yet – so don’t get ahead of yourself.

To turn values around and see positive territory again, we need to see several months of impressive pending home sale increases.  I’m hopeful, and yet keeping my expectations realistic.  This bump may be as a result of built up demand from an extremely slow fall and winter season.  Or it might be the start of a new trend.  Keep your fingers crossed!

http://rismedia.com/2011-03-10/regional-spotlight-washington-d-c-metro-area-sees-largest-pending-home-sales-increase-in-a-decade/

http://www.blogtalkradio.com/greenlivingguy/2011/03/08/interview-brandon-green-a-green-real-estate-broker

About this time every year my phone starts ringing off the hook with sellers wanting to sell now to maximize the momentum of the spring market in hopes of netting more money.  But does selling in the spring actually help you get a better price?  The answer is – sometimes…

The dynamics of the real estate market are unique each year. Last year for example with the expiration of the tax credit, the spring market was wild with a sharp increase in prices.  Those prices then retracted significantly after June 30th.  Spring 2010 was an excellent time to sell.

Spring 2011 is different with no tax credit to push buyers into open houses and interest rates that have been low for so long they now appear normal.  My sense is we will see a nice bump in sales activity but not necessarily a bump in prices this spring (or this year for that matter).  Buyers are still extremely price sensitive and will avoid the multiple bid frenzy like the plague.

My best advice is to look carefully at the timing in your life, rather than the season.  Why are you selling?  Let’s talk about that, and then determine when is the best time to put your home on the market.

For more information about selling your home, contact me at Brandon@BrandonGreen.com