Spring has sprung, which means we've arrived at the busiest time of year for our market.
Buyer activity is soaring and interest rates are at the lowest point they’ve been in a decade—they’re currently positioned at a phenomenally low 3.75%. And there’s more good news in that regard: The Fed has announced that they’ll refrain from raising rates until next year, which is a victory for both buyers and sellers.
At 1:32 in the video, you’ll see a graph that displays the number of homes for sale against those that have sold and those that are pending sales. Most notably, the pendings between February and March this year have risen sharply from 1,863 to 2,455, which just goes to show that buyers are flocking to our market right now.
Just last weekend, in fact, our team held an open house on a brand-new listing that drew 50 buyers, received nine offers, and sold for $20,000 over list price.
The graph at 2:37 shows the average price per square foot and, since the start of the year, we’ve seen an uptick in prices to $238. Further, homes are currently selling at 98% of their list price and in 47 days on average, which can be seen at 2:53.
Currently, the average price of for-sale homes is $634,000, while the average price of homes that have sold is $457,000, attested by the line graph at 3:13. Of particular interest is our average months’ worth of inventory right now. This March, we had just 1.6 months of inventory—the lowest it’s been in several months.
We've officially arrived at the busiest time of year for our market.
Because we’re firmly in a seller’s market, there’s an amazing amount of opportunity for those looking to sell their home right now. There’s one thing to be mindful of, though: Our present market is a convergence of a beauty contest and a price war.
It’s a beauty contest in that your home must show at its best and have attention-grabbing curb appeal. After all, homes that are staged properly sell faster and at higher prices.
It’s a price war in that it’s extremely incumbent upon you to price your home correctly. The opportunity to capture top dollar is certainly there in this hot market, but don’t get greedy and price yourself out of the market.
To illustrate this point further, consider the pricing pyramid shown at 4:46. Sellers whose asking price is 10% above their home’s market value will only draw 30% of prospective buyers. Worse still, buyers who price 15% above market value will only have 10% of buyers’ eyes on their home. It follows, then, that pricing your home on par with or below market value will greatly widen your buyer pool.
Many sellers make the mistake of pricing above market value and, as a consequence, they wind up chasing the market down and getting less for their home.
With market conditions the way they are, your marketing efforts will be key in securing the best deal on your home sale; your strategy should encompass all forms of media such as TV, radio, internet, social media, flyers, open houses, etc.
In sum, the market is hot at the moment, so don’t miss out! If you have any questions or would like help with your real estate needs, please reach out to me. I’d love to help! And Happy Easter!