News of what’s going on in our local real estate market has been circulating throughout the community for a couple months now and I’m here to say all of the rumors are true. The market is hot right now – extremely hot. In fact, there’s a shortage of homes for sale and this is driving prices up. It all started in 2012 with a strong year of sales, improving employment and decreasing foreclosures. We were additionally bouyed by a strong winter market when traditionally sales activity decreases. This spring, it seems like the flood gates have opened and pent-up demand has unleashed a wave of buyers.
In February and March, many of these buyers snapped up the available low-priced homes in each market segment. We are currently left with strong demand and little inventory – something we haven’t experienced since 2005. What this means is that values have risen – in some cases quickly and dramatically. As the low priced homes have been taken out of the marketplace, this has exposed the higher prices to buyers. Multiple offers have also been pushing up prices on some of the lowest-priced homes.
If you are a seller, now is the time to put your home on the market. Take advantage of the strong buyer activity, rising prices and lack of competition to sell for a much higher price than you would have been able to last year. If you are a buyer, you need to adjust your strategy. Many of the best deals are gone and the good deals that dribble on the market are going to see extreme competition. One of my buyers was recently in competition with 18 other bids within the first 3 days of market time. Because the market has tightened, as a buyer you need to make your choices quickly – speed is essential.