Here we are, already fall… Where was summer?! And where is our stable housing market we had grown so accustomed to?
Over the past nine months, the housing industry has truly been a year of foreclosures and price adjustments. Of the enormous inventory of homes available on the Island, certainly the lion’s share of sales has concentrated under the $300K price range. 110 sales in this range, 64 or 58% of those were “Distressed Homes”. Those homes do not release someone to buy another home, but release a bank to put another foreclosure on the market. The 110 sales under $300K also represent 66% of the total sales for the year. This is why the higher priced homes are in such a slump and are having to continually drop their prices to get a sale. The compression of prices is on and it is a great time to shop for a home! Interest rates remain all time historical low and the inventory just continues to build. Larger and more expensive homes are now dropping below the $300K range for the first time in a decade. I foresee a year of opportunity for buyers at all price levels! Even waterfront homes are being discounted! All of this as the northwest adjust to a depressed economy.
It must be remembered that the sale of a home is “the price a willing Seller will sell to what a willing Buyer can afford”. Homes now are selling for much less than they can be built.
On the selling side of the market, sellers are now squeezed between setting a low enough price to entice a buyer into an offer OR remaining in the home for an unknown length of time. This becomes critical if the owner must leave for another job, or sell for other reasons. Appraisals have been brutal this year, making refinancing if not difficult, at times down right impossible. All of these pressures combined with the scarcity of buyers, makes selling and retaining equity extremely difficult. A seller must change their approach and take into consideration what it is they will seek to replace their home with somewhere else. Prices are relative. You may have to sell at a price much lower than you dreamed you would, but you will most likely find another home to your liking at a much lower price than you expected. It makes sense to monitor both the prices in your own neighborhood and the prices in neighborhoods you desire. Quality of living would be the goal of most homeowners, unless you are into making a profit by “flipping” property, which is very difficult in this market. So, learn what you realistically can sell your home for and shop where you wish to locate to determine what you can purchase. If you cannot make the move, then you need to plan to stick it out another year or two.
All this to say, it’s not impossible to sell a home in this market, but relying on your Realtor may be the best thing you can do! We know the market and where prices are moving. Price is motivation and key in this market!! If your home is not selling within 30 days, numbers need to be revisited and a price drop is necessary. Lean on us and use the information we can share with you to maximize your real estate ventures.
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