I have to say I took my fair amount of time off over the holidays. It wasn't that business wasn’t being done, but to be able to sit back and reflect on the past year, gain perspective, and recharge the batteries was both necessary and appreciated.It is now time to get back to business, and the first matter at hand is our market. Alamo Title's Market News Bulletin for January 12, 2009, gives us these facts:
December 2008
Units for sale (compared to December 2007):
New listings were down 12.84%. Pendings were up 34.86%. Solds decreased by 16.01%.
Average prices:
The "new listings" average list price is up 2.36%, to $300,316. In December 2007, the average list price was $293,392.
New listings were down 12.84%. Pendings were up 34.86%. Solds decreased by 16.01%.
Average prices:
The "new listings" average list price is up 2.36%, to $300,316. In December 2007, the average list price was $293,392.
Sold average sales prices decreased 5.66%, to $238,867. In December 2007, the average was $253,205.
These numbers are interesting to me for several reasons. The one that jumps out is the "New Listings" list price, which is up 2.36%, but the sold price actually decreased 5.66%.
This tells me that sellers have not caught up to the realities of the market. Successful home sellers are offering their properties at or under the current Sales price of the homes in their area. The properties that are active on the market because of price, may be on the market but not necessarily in the market.
Oh, and by the way, 80% of the marketing that is done on the sale of a home has to do with price. The price of the property must match the condition of the property. If your home is the best on the block and you can effectively articulate that value through smart marketing, then ask 5–15% more than the selling price of the other homes around you. But if your home is not up to snuff, then you may need to ask 5–15% less or more.
Interest rates are also a major player in the sales activity of our market. Interest rates on a 30-year fixed-rate mortgage averaged 4.96% for the week ending January 15, down from the previous week's 5.01%, which is the 11th straight weekly decline, according to Freddie Mac.
What this has done is create frenzy in the refinance market. Local lenders are reporting that up to 75% of their business is being done with people who want to refinance their current loan. This is another factor that plays into the 12.8% drop in home inventory.
They call it a buyer’s market for a reason: it’s a great time to buy!!!!! Low interest rates, low seller confidence, and declining sales prices make it the perfect storm for buyers looking for a great deal.
These numbers are interesting to me for several reasons. The one that jumps out is the "New Listings" list price, which is up 2.36%, but the sold price actually decreased 5.66%.
This tells me that sellers have not caught up to the realities of the market. Successful home sellers are offering their properties at or under the current Sales price of the homes in their area. The properties that are active on the market because of price, may be on the market but not necessarily in the market.
Oh, and by the way, 80% of the marketing that is done on the sale of a home has to do with price. The price of the property must match the condition of the property. If your home is the best on the block and you can effectively articulate that value through smart marketing, then ask 5–15% more than the selling price of the other homes around you. But if your home is not up to snuff, then you may need to ask 5–15% less or more.
Interest rates are also a major player in the sales activity of our market. Interest rates on a 30-year fixed-rate mortgage averaged 4.96% for the week ending January 15, down from the previous week's 5.01%, which is the 11th straight weekly decline, according to Freddie Mac.
What this has done is create frenzy in the refinance market. Local lenders are reporting that up to 75% of their business is being done with people who want to refinance their current loan. This is another factor that plays into the 12.8% drop in home inventory.
They call it a buyer’s market for a reason: it’s a great time to buy!!!!! Low interest rates, low seller confidence, and declining sales prices make it the perfect storm for buyers looking for a great deal.Good luck to everyone in 2009.
"The best way to predict the future is to create the future"....................Peter F. Drucker
