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For a few years now, like the rest of the nation, we have been experiencing a downturn that hit our marketplace with a slam and then remained at that low level month after month. The subprime crash of 2007 led many areas to doom, plunging the environment into a buyer-controlled imbalanced market – consistently fueled by a challenged economy and dismal jobs market.
But today, we are finally seeing things move in the right direction. As is true with all businesses, the basic principle of supply and demand comes into play particularly with real estate and as we find ourselves in a climate of pent up demand combined with dwindling inventory – the resultant equation is one that pushes prices up.
Montgomery County Inventory Down, Sales Up
Looking at the previous year’s inventory levels the number of homes available on the market today comparably have dipped drastically. A twelve percent decline in the number of open property listings has pared down the choices for buyers out there looking to buy now while the market is still on their side. On the other hand, sales have risen dramatically in our area. With a 32% rise in sales this month as compared to the previous month, buyers are helping to push prices up with the increased demand coupled with fewer available homes.
Unprecedented Opportunity For Buyers
One of the reasons for the accelerated sales recently has been that buyers are sensing a shift in the market. They realize the record-setting low interest rates will begin to climb soon if they have not already reached bottom. Currently, in our area we are still seeing interest rates on a 30-year fixed rate mortgage as low as under 4% and for qualified buyers some ARMs are coming in at below 3%.
Savvier than ever before, buyers today are taking advantage by trading up into bigger and better homes. Homeowners are refinancing to get a lower monthly payment and shave off years from their existing amortization schedule. In fact, there are some government programs designed to shave off some costs of obtaining a refinance for some homeowners.
Sellers Have Increasing Control
For the first time in years, sellers are finding themselves faced with multiple offers. Bidding wars are common for homes that are effectively priced, located in a great area and have been kept up well with plenty of attractive features and desired amenities. As demand continues to rise against consistently lower inventory, the opportunity to yield top dollar on their homes while being able to sell fairly quickly has many sellers on the fence choosing to list now.
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If you would like to explore your options today and find out what you might be able to get for your money today, contact us today. And if you are on the fence about selling your home but are not sure if now is the right time – we can do a comparative analysis on area homes to help figure out what you can get for yours keeping in mind the shifting market. We look forward to hearing from you soon!
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