Buyers - 2018 is a Sellers Market

Buying

multi-offers-1

Have you noticed something happening in Real Estate?

 

If it's been awhile since you bought a home (2002-2006) or if you are entering the home buying arena for the first time, you are seeing something that hasn't happened in 12 years - a Seller's Market. Now, what does this mean?

 

First - There is a shortage of inventory in any given price range

What does this mean?

There are not enough houses in a price range for all buyers to get one.

What does this mean?

There are multiple offers on a house, houses are only on the market for hours or days not months.

 

Second - Home prices are increasing

What does this mean?

If there are 5 buyers for 1 house there is more demand. Multiple offers ensue and 4 people are left to continue looking for a home. Refer to #1.

 

Third - It's time to "get off the fence"

What does this mean?

As a buyer, you can no longer take your time in making a offer. Gone are the days of thinking it over and praying on it. You need to pray that no one else saw this house on the internet and think that they can wait until the weekend to see it. A buyer needs to be educated on the market and ready to make an offer a lot sooner, otherwise another buyer will and get the house. Think in terms of minutes to hours.

 

Fourth -  The early bird gets the worm

What does this mean?

When a home comes on the market, you need to be one of the first ones through the door. I can remember in 2005-2006 when I was new to real estate, we were drafting contracts on the hood of our cars with deposit checks already made out because there was a line of cars and agents waiting behind you to show the same house. We are coming back to that again. (I was second of three to show a house on Saturday 1/20/2018) It's rather exciting to see houses moving again!

 

Fifth - Good communication with your Realtor

What does this mean?

Buyers should ONLY be focused on New and Just Reduced listings. You cannot get this info from the internet websites( Zillow, Trulia, Realtor.com). Only your agent and the GSMLS will have this info. I do suggest having me set up an email alert to you with these 2 search criteria highlighted. Other homes on the market are old and stale inventory that sooner of later will get reduced or someone with less on their wish list will buy.  

 

In Conclusion -  Spring Market 2018

What does this mean?

In Sussex County, NJ where I am from there are 1,324 homes on the market as of 1/24/2018. The past 20 months have shown that we have swung into a market of low inventory. Active homes on the market average 3 months compared to 4 months on the market in 2017. This may not seem like alot but this average includes short sale and foreclosure homes which are not highly desirable given the median age of our homebuyers.

What does this mean?

Today's homebuyer wants, to coin an HGTV phrase, "move in ready". It's these and foreclosed homes with very minor work needed that are flying off the shelves. If this is the type of home you are looking for, better stand poised at the gate when one hits the hotsheets! We are also seeing interest rates rise, which will reduce your buying power 4-5% for every 1/2% increase. Be in touch weekly with your mortgage professional for current rates and to see if your buying power is affected. 

Read more about Home Sales for 2017 -   2017 Best Year in 11 Years

 

Don't despair - Keep in touch with your Real Estate & Mortgage Team!

 

Any savvy buyer who is serious about buying a house in 2018 needs to look at this phenomena as the release of a NEW iPHONE!!!  Gotta be the first one in line to get one.