In today's market, we probably hear the question "Why hasn't that house on XYZ street sold yet?" or the comment "Nothing is selling" several times a week from friends, neighbors, prospective purchasers, etc. More often than not, our answer is: "If it is priced right, it WILL sell! ". And while that statement is true in boom times, it holds even more truth today.
Pricing in today's market is complicated and the following graph should help shed light on why determining the correct list price can be challenging.
As you can see, the exponential growth in appreciation between 2000-2006 far surpasses the growth of previous decades.
The challenge for realtors is to bring homeowners back into reality. While we are seeing a market correction, we may still have a ways to go. And while current sales data is typically the largest factor in determining a list price -- other factors such as inventory supply, location, and property improvements are factored into the price as well. Remember each home is unique and holds many memories for most, so only an established full-time realtor can give you the education you need to make an informed decision in this ever-changing housing market.
We pride ourselves on our honesty and candor -and it is difficult to deliver bad news - and difficult to stomach, if you are the homeowner....however, we also realize that a homeowner cannot make a fully informed financial decsion about selling their home without a "real price".
Tuesday, May 25, 2010
Tuesday, May 4, 2010
Positive Signs in Housing Market
The data is in and we wanted to be the first to share the good news with you! The positive first quarter results indicate that our region's housing climate is on the road to recovery. Sales for Metropolitan Richmond (City of Richmond, Chesterfield, Hanover and Henrico) were up 9% over first quarter 2009. Moreover, pending sales demonstrated even greater improvement with a 22% increase - a strong indicator of next quarter's sales.
We are pleased as punch to share this good news about the current housing market in Richmond. And while the sales data is improving daily, we must realize that the recession was deeper than most thought and that recovery will not be a "V", but rather it will be more gradual growth.
What does that mean for Buyers and Sellers?
"If Sellers will take note of the overall economy and the housing market we're in and PRICE their homes accordingly, and if Buyers will recognize that now is the time to buy before interest rates climb, then we should continue to see solid market growth" stated Karen Smith, 2010 President of Richmond Association of REALTORS. Central Virginia including Metro Richmond are still in a state of flux and will most likely remain so for the next six months or longer. While we are seeing signs that sales are improving, it remains unclear how much is due to federal government efforts and the homebuyer tax credit. We attribute the increase in sales to still-low interest rates and pent up demand. We know we have been preaching to you over and over to act now if you are a Buyer- Prices have now reached levels that have not been seen since before the housing bubble! And if you are a Seller, your house may be worth more today than in the next year. Why? Because as the sales data improves, homeowners gain confidence and will likely put their homes on the market. Supply of homes will increase dramatically and create a surplus of inventory thus creating further downward pressure on price.
We are pleased as punch to share this good news about the current housing market in Richmond. And while the sales data is improving daily, we must realize that the recession was deeper than most thought and that recovery will not be a "V", but rather it will be more gradual growth.
What does that mean for Buyers and Sellers?
"If Sellers will take note of the overall economy and the housing market we're in and PRICE their homes accordingly, and if Buyers will recognize that now is the time to buy before interest rates climb, then we should continue to see solid market growth" stated Karen Smith, 2010 President of Richmond Association of REALTORS. Central Virginia including Metro Richmond are still in a state of flux and will most likely remain so for the next six months or longer. While we are seeing signs that sales are improving, it remains unclear how much is due to federal government efforts and the homebuyer tax credit. We attribute the increase in sales to still-low interest rates and pent up demand. We know we have been preaching to you over and over to act now if you are a Buyer- Prices have now reached levels that have not been seen since before the housing bubble! And if you are a Seller, your house may be worth more today than in the next year. Why? Because as the sales data improves, homeowners gain confidence and will likely put their homes on the market. Supply of homes will increase dramatically and create a surplus of inventory thus creating further downward pressure on price.
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