Inventory Shortages continue spreading throughout the region
Just in the last week alone, I’ve been in several multiple-offer situations, in everything from simple 3BR ranches in the mid $200s, to homes over well into the $600s. Sellers, wary that the fall market is coming, have adjusted to the market conditions, worked on their homes to create the perfect product, and have been selling almost instantly in many cases.
Without question, prices had come down from where we were at the peak, but relative to the comps in the surrounding areas, we seem to be on the verge of a spike in activity that will likely take us through the to the winter nicely. We’ve already cleared out most of the older inventory, and seem to be well on the road for a recovery.
What will a recovery look like? Well it will not, by any means, take the shape of a rocket ship heading for the moon…but rather will be felt by a flattening of pricing which will likely last through the end of 2010 – putting an end to the severe discounting that was seen in 2009. After a flat 2010, I would predict we’ll see prices stabilize starting early in 2011, and while few will be throwing caution to the wind and overpaying for property – we’ll at least be on our way to some normalcy. Combining this with interest rates that are at historic lows in the 4% range, homes have never been this affordable in our generation.
How can we quantify the recovery itself? Well, in the last few weeks, I managed to close or sell eight properties, across a wide range of towns, styles and price ranges…and this is just the little blip in the market that many were hoping would herald the beginning of the rebound.
Remember, it’s often not a matter of whether or not the opportunity is knocking, but whether you have the courage to open the door.
To those who have the strength of will to boldly go where so many have gone before, the longterm rewards could make it a once in a lifetime chance to get into the real estate market before things head back to the stratospheric 2005 numbers. How many of us looked around at the values then and said to themselves, “Boy, if I could ever get that home for under 400k, I’d move on it in a second.” Well, here’s that chance…but it’s slipping by quickly and those who fail to act know, will undoubtedly be kicking themselves later wishing they had.
Most important, if you’re even remotely thinking of making a move, give me a call or drop me an email, as I likely have buyers waiting just for you already.
Steve Levine is the President of Steve Levine Inc., and an agent for REMAX First Choice. He has been ranked as the Top REMAX Agent in New England for the last nine years, and is the 2008 recipient of the REMAX Community Service Award and the 2007 Massachusetts Association of Realtors Good Neighbor Award. He can be reached at 1-508-735-4663 or e-mailed at firstname.lastname@example.org.
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