The real estate market remains active! However, it’s not due to an abundance of homes available. It’s the growing number of eager home buyers, looking at what few properties are available. With interest rates remaining low, buyers are attending open house tours hoping to find a place to call home. Instead, they are finding fellow buyers and competing offers…making this season more than challenging.
Even with reports of housing shortages plaguing home buyers, some homeowners remain hesitant to make the move to place their homes on market. Even with November being here, the advantage of buying with affordable interest rates is fueling buyers through the holidays. The conflict of spending time with family and friends, or having to negotiate open house tours and property showing requests may be discouraging some homeowners from taking the plunge.
I recently heard from an associate that her client, although interested in selling her home, has reservations. The fear of not finding a home to buy is stopping them. There are options that can be taken to address this concern, including a lengthy closing date, 3-4 months, or make the sale subject to seller finding suitable place to move (temporary or otherwise).
A homeowner with a nice property should see a good volume of buyers at their open house and at requested property showings this season, should they consider selling. In Arlington, as of Nov. 13, 2012, there are only 12 single family homes, 1 multi-family home and 19 condos/townhouses available. Our agents and their clients are facing multiple bidding situations on homes. This may not happen for every home or your home, but with increasing demand and inventory as low as it is, good homes are at a premium.
Today’s market conditions when compared to the same date in 2011, clearly indicates a critically low inventories in all categories (single family, condominium and multi-family homes). Several communities, including Arlington, Belmont, Burlington, Cambridge, Lexington, Medford, Newton, Somerville, Waltham, Watertown & Winchester are lacking in volume at all price levels. In a larger comparison, Middlesex County as a whole is greater than 25% deficient in all categories, 2011 vs. 2012 (click here Report 11/13/2012).
There are some points to consider if you decide to wait for Spring to list your home. The demand for properties is great right now, in Springtime your home will be competing with more properties. Additionally, lower interest rates grant home buyers more breathing room for negotiations and possible bidding wars. Lastly, if you have been concerned about your home’s market value; the recent low inventory and increased demand improved market values for the time being. In the coming months, prices may take a slight correction as more properties enter the marketplace and demand adjusts.
Please consider all of your options and consult your real estate professional. As a measuring stick, consider having a market evaluation done for your home. Each time you have this done; it’s only good for a window of time and will change as properties are sold.