Is a SELLERS Market Charging back?

 

There is a very distinct difference today in the real estate market for what a Seller believes and what a Buyer believes.  The "facts" the home seller believes is that the real estate market has rebounded and is on the fast track to return to the pricing highs of 2006 & 2007.  These facts are based on the continued pounding of this information into our heads by the national news media.

The "facts" that the Buyer believes show that the real estate market is about to implode again and the recent 1% jump in interest rates will impact pricing and things will start to decrease again.  There is still an abundance of properties on the market for them to choose from and they have an expectation of 10% - 15% off the asking price of any property offered.

What do you believe?  Why do you believe what you believe?  Is your education of the current market derived by newspaper headlines, or do you follow the market, research the numbers monthly and use all available data to help you understand the market at a local level?  Opinions generated without proper research can cost you money and time, so don't be stubborn because you want to believe...

The real estate market in any area of the world is determined by the properties in that market that are actually selling.  It is not determine by what a single Buyer or Seller Wants to be taking place.  The market is what it is and the only decision you would normally need to make is if you can participate in it.

The most recent facts from properties in our market show a flat market, in general.  My opinion is that Flat is actually a good thing right now based on where we have come from.  Last year we were happy that prices were only Decreasing around 2% - 4% annually, so for 2013 flat is an improvement.  Pricing is always the central question when it comes to real estate, but the true drivers are obviously Supply of properties on the market and the demand for those properties.  The demand for single family homes in our market is up 16% from the same period (Jan-June) in 2012.  16% more properties have sold this year and there are 1% fewer homes on the market to generate that increase.  Supply and demand working together have brought the Average selling price of homes up 4% this year...but that is not entirely true.  The larger factor is that all Distressed (foreclosure & Short sale) properties is down by 6%.  Fewer properties priced low will improve the Median selling price more so than fewer overall properties available, or more selling.

Condo facts show that demand is up 5% and supply is Down 11% which has had ZERO effect on pricing.  The average price is the same for the first six months of 2013 as it was in 2012.  All of that along with Distressed condo sale being down 24%!  Wow.  Let me say it again...Condo prices have not moved up at all market-wide this year when compared to last year.  This is true for the Myrtle Beach market.

Land supply still puts us with enough land to last for over 3 years based on the demand, so an extreme Buyer's market remains in effect.

When you remove Land from the equation and divide the number of properties selling in a month into the number available we arrive at a 8 - 10 month supply of properties today.  A balanced selling environment (not a Buyers market or a Seller's market) happens when the supply is around 6 - 8 month supply.

In conclusion, our market is heading in a very good direction.  A healthy direction.  As has been predicted by real estate experts for over 18 months, we are in a long, slow, steady period for pricing.  Flat pricing is expected through 2014 with very low single digit increases to begin in a year to 18 months.  If a "Bottom" is still being discussed then it is past us.  It is in our history now mainly due to affordability related to mortgage rates.  Cash buyer's still have an advantage here. 

Seller's shouldn't expect improved pricing which keeps them from selling if they want or need to.  Buyer's should understand the market to know that demand has eliminated most seller's from considering offers of 10% or more off a fair asking price.  If you want to buy it you better get it before someone else does.  Just ask three of our clients that experienced this recently!

Make it a great day!

Ben

WHY ISN'T MY HOME SELLING?

Here is a list of 8 reasons that may be preventing your property from selling.

#1. The Price isn't right for the market.

             The real estate market is fluid and experiences ups and downs with prices changing due to supply                

             demand.  Generally there isn't significant changes in pricing, but could you catch a $500. to $1,000 

             swing in pricing by staying on top of things?  Yes.  Whether selling or buying you have to watch

             not only what has sold recently, but what other similar properties are available that compete with 

             yours or the one you want.  The supply impacts pricing, just as past sales do.  Also, if your selling

             don't price it high and drift it down.  Price it right for the market and expect to receive offers in

             the first 14 - 21 days.  If you hit the market and get no showings or get showings and no offers,

             you've missed the mark.  Plan on staying on the market a while or make the change right away.

#2   Placing a sign and putting on MLS isn't anywhere near enough.

             Today's market demands an aggressive approach to getting the home sold.  In addition to all

             manner of normal marketing, social media and consumer sites, the property must be Featured

             so it stands out and the agent has to proactively push the property out to Buyer's and other agents.

             Be sure the agent you select is aggressive in nature and not passive.

#3   The Listing has to Pop!

             It starts with great photos and continues into a well planned virtual tour.  Between 90% - 97%

             of potential Buyer's will see your property on their computers or smart phones first.  If it doesn't

             Catch their eye on the screen you can forget them ever crossing the threshold.  A professional

             camera with EXTRA lighting is a must!

#4  Buyer's can't see the property.

             Buyer's shop for property at all hours of the day.  I receive the highest number of emailed leads

             at night after 9PM.  They are also out looking on weekends, after work and during your dinnertime.

             If your on the market you have to be open to showings at all times.  You never know which showing

             will be the next owner of your home.  If you own a rental property you have to do your best to have 

              it ready to show between check in and checkout or make sure the renter knows it is on the market.

#5  Your timing isn't right.

             Monitor the market to make sure you aren't hitting the market when there is an overabundance of

            other homes on the market on your street.  If you're forced to sell then you have no choice and you

             can't control what happens after your on the market, but if there are many like yours available then 

             make sure yours is the best.

#6  The house has a stigma or isn't a great as it should be -

             Is your home cluttered or dusty or in need of pressure washing?  Do you have too many counter top

             appliances, or the grass is too high?  Take a few steps away and put on an unbiased Buyer's cap;

             Take a truthful, honest look at your home and compare it against the similar ones in your area to see

              if you would select your house above the others....if you had to do it all over again.

#7  Your too detached from the process.

            There is no doubt that when you hire an agent that you expect them to take care of things and the 

            good ones do.  It is also true that the more engaged a seller is in the process the better the odds

            of getting the property sold.  Two-way communication and having an open mind are essential to

            to a successful conclusion.  Get to know your agent and understand the way they sell, at least to

            the point that you trust them.  Understanding each other and listening to your agents guidance is

            important.

#8  Your may have chosen the wrong agent.

            In our local market there are over 2600 licensed real estate agents.  To date, less than half of them

            have sold a property this year (all the way into June). The number of sales an average agent makes 

            in a year is 4.  933 agents have sold 4 properties are LESS this year.  You'll have to get into the top 

            40 agents in the market for sale performance of 5 sales per month in our market.  Make sure you

            get the stats from your agent on what they've sold and what they have listed this year.  Activity

            breeds activity and the top 10% of working agents in this town will always have time to talk with 

            you.

Consider this food-for-thought and use it as one of the sources you have to better position you in accomplishing your goals.  Your home is probably your most important asset, so do your homework to make sure the relationship you begin is the right one.  ben@benguyton.com

Is 4% the new 3.5% for mortgage rates?

Mortgage interest rates have remained at historical lows for a long time now.  Sure, they have fluctuated between 3% and 3.875% for over a year, but the 4% threshold has been reached and it may not come back below it again.  The problem with low, low rates is that when the new lowest rate is seen it then becomes the benchmark that all rates are judged against.  Let's face it 4%, 5% for a mortgage are great rates, but it does reduce your buying power.

Rising rates either eliminate your from being able to buy, reduces your ability to cash-flow and investment property, or reduces the size of the home you can purchase.

Rates have now been over 4% for over a week now and seem to be stable.  There is an absolute here; We can't all wish for a better overall economy and expect mortgage rates to stay low.

When are you going to make the decision to buy?

Real estate prices have remained flat all year and demand for properties has remained high.  If the current market continues into next year we will see segments of the market in Myrtle Beach metro start to increase.  Today, it costs you more to buy a property (the same property) as it did last month because of rates.

Could the new low for mortgage rates be 4.5%?

Time will tell.  Are you willing to take the risk?