Real Estate Market

Real estate is a commodity and operates just like other commodity markets.  Commodities sell every day with prices fluctuating based on market conditions and perceptions influenced by supply and demand.  For example, people wanting to buy stock determine how much they will pay on any given day based on the current information about the company and the market in general.  Those wanting to sell the stock may request a price, but the buyers’ knowledge of the market determines what they pay.
The real estate market operates very much like the stock market in that a property is only worth what a buyer will pay for it at a certain point in time. Buyers make their decision based on current conditions and their perception of value.
 
In most areas, home inventory is high, indicating a downward pressure on home prices.  However, even with a lot of properties on the market, when a buyer perceives value – a property they love at a price that seems reasonable in today’s market – they buy.  Sellers who understand that real estate is a commodity and price their homes accordingly will be much more successful in attracting the interest of buyers.
 
The graph we are providing shows the trends, recent activity and current market conditions you should know as a buyer or seller.  Whenever you or anyone you know need real estate advice or additional market insights, we are always ready to assist.

Historically low interest rates and the extended federal tax credit have helped millions of buyers take advantage of one of the best buyers markets in history. Market conditions have improved considerably with the help of these stabilizing forces. Expect to see continued market activity through the winter and spring as savvy buyers take advantage of the extended $8,000 tax credit. Freddie Mac reports that 30 year conventional loans available in the high-4 to low-5 percent range.

Here in the market covered by the MLS Property Information Network sales were 8.6% higher in December of 2009 than 12 months earlier, a decent gain.  Much of that momentum can be attributed to the unprecedented government incentives through the record low mortgage rates and tax credits.
The stability that’s been created as a result of these programs has led to increased competition for available homes and multiple offers in some cases.

When selling your home in the winter, the art of staging the inside becomes more important.  Here are five simple tips that can help you sell your home shine even when the outside landscaping has faded:

• Keep your house warm.  In the winter people tend to turn the thermostat down to save money, however a warmer house is more welcoming to a potential buyer.
• Clear your walkways and driveways of any snow or ice.  Make it easy for buyers to get to your home.
• Clean the windows and blinds.  Letting in the natural light can brighten up a room and cheer up the home.  This also brings attention to the windows and blinds so make sure they are clean even during winter.  Dirty windows will make the home seem as those it's not well maintained.
• Background music played softly can completely change the atmosphere making the home seem cozy and keep potential buyers around longer.  Stick with classical music which can appeal to anyone.
• Leave the light on.  Before showing a home, make sure it's well lit.  A well lit home is more inviting.  If you're not home, consider setting up timers.

Following these simple tips can give your house that added boost in today's competitive market. For information on selling in our local market, please feel free to call and ask for a computer analysis of our recent market activity. We would be more than happy answer any questions you might have!