A SMALL & SHORT WINDOW OF OPPORTUNITY?
Summary: Market weakening, will likely pull prices lower with higher inventory in Summer 2016. After record high of unsold homes Aug/Sep 2015 at 275, available homes dropped all the way down to 130 in Dec 2015, and even lower for Jan 2016 at 124. Potential opportunity. ACTUAL example below.
If we’re honest one can see the flattening out of actual selling prices. Supply and demand dictate everything, except in a few instances.
A good example is a very strong upward market that manages to carry the added bulk of selling inventory around the summer months. Prices keep inching up, defying the increased volume for sale. But that only holds true in the earlier stages of a powerful market rise. It’s my strong opinion that stage has passed.
When markets get tired, or are heading down, the traditional summer glut will now feel the effect of a buyer’s market.
As noted in the most recent market update chart, we went from 275 UNSOLD homes down to 130 by year end 2015. I have no doubt it’ll pick up again, thanks to cyclical & seasonal trends. But it’s also my strong conviction that with inventory levels at 2-year LOWS, now just might be a great, but temporary window to sell, if that’s in your plan.
JUST IN: John & I have had clients tell us other agents advising them to not bother with the winter months. We respectfully differ, based on our actual, extensive strong local activity.
A VERY RECENT example. Back in late August (highest inventory) we listed and sold a property. In December, we received a call from another seller on the same street. (A model match to the one we just sold.) Factoring the second listing was a much nicer home, we gave our clients a potential selling price of $725,000 to $735,000, representing a $40,000-$50,000 difference.
Since there were no other competing listings around, and with the significantly reduced inventory, we strategized listing higher, while staying within practical bounds based on comps. We pre-marketed it over the next few weeks, and not very long after the New Year, brought it to market. The first weekend brought in a THREE multiple offer situation, which allowed us to counter initial lower offers, and ended up with a CASH OFFER for our sellers, over $80,000 HIGHER.
We cannot guarantee results like this for everyone, and each situation is always different. Feel free to call for specific questions to explore & analyze your situation.
Jack (909) 262-3132