The market is heating up with the weather!
We are moving into a full blown spring market both from an activity and inventory standpoint. I wrote 3 separate contracts over the Easter week-end so there appears to be no respite.
The “Elephant in the room” is always inventory levels and while we have had a nice Spring bump we are still lagging behind last years figures. Last week we had 5,489 homes on the market region wide while the same week last year we had 6,905. The good news: All of us at the Platinum Club believe we will have increases in inventory in the coming weeks.
The pace of sales is similar to last year, averaging just over 1,000 a week and prices are rising on average about 3.8%.
I want to re-irate that this continues to be a stratified market in several senses. The first is on price. Generally the market above about 700K is moving much more slowly than the one below that point. As things continue to thump along however we expect that strength to work it’s way into the higher price points.
The other area of stratification continues to be between homes that have been improved, priced properly and marketed aggressively are flying off the market and receiving multiple offers while those that are short in those areas sit there, especially homes that are unimproved and over priced.
There is good news on the interest rate front. They continue to be stable with periodic moderating as it’s becoming clear that the proclamations about rate hikes from the Fed have already been priced into the market.
Distress sales continue to decline, making up only 3.2% of the market. Only 71 foreclosures and 103 short sales region wide. So be wary of communities where there are still multiple distress sales occurring.
The rental market is heating up as well.
So what does all of this mean? For one if you are considering moving up into the higher price ranges there would seem to be a good window right now.
It is also a time to remember to focus on what you think a home you are bidding on is worth based on the market, overlay that with how much you want it and stick to your conclusions. Never operate out of fear. You don’t want to feel like you lost right after you win!
We are seeing some of that reflected in properties not appraising frequently.
Have a wonderful and blessed Spring!
It’s a good life.