Home Buyers and Sellers, It's Time to Make a Move

What do you want to hear first? The good news or the bad news? OK, here goes. The good news for the Massachusetts real estate market is that sales jumped 14% this past August with the median price of a home climbing 11% from just a year earlier. Even better, more than 40% of condos sold in the Greater Boston area in August went for more than the asking price.

Great news, right?

Not so fast. Every silver lining has its cloud and in this case it’s that the actual inventory of homes has continued to remain tight thus creating a pent-up demand. Not such good news for home buyers and a quandary for home sellers. Here are three reasons behind this housing trend:

• Home sellers want to wait to build more equity in their homes before selling
• The same limited inventory leaves home sellers nowhere to go when they do sell
• Home sellers hoping to buy a new home are waiting for prices to drop

The irony here is that if more home owners were to put their properties on the market, inventory restrictions would ease and home prices would stabilize. While this works out to be a win-win for buyers in particular, ultimately every homeowner looking to sell will also benefit since they’ll become a home buyer as soon as they sell their current home. Got that?

So what are home sellers and home buyers to do? Here are some timely tips to help contend with the current housing market.

HOMEOWNERS, GET READY TO SELL

• There’s a Buyer for Every Home – Mr. & Mrs. Home Owner, while you may think that you should hold off on selling your home since you think yours can’t compete with others on the market, think again. Not everyone wants a ranch or a Tudor or a townhouse but everyone wants options to choose from. Having more homes to choose from (including yours) takes the pressure off buyers who can then make more thoughtful buying decisions.
• A Home for All Seasons – Spring in New England is the primo time for the housing market but truth be told people look for homes all year-round. Yes, while slogging through a snow bank to get to an Open House has a chilling effect on the market (pun intended), people still purchase homes in February. Don’t time the market…if you want to sell your home, the best time to do it is when you’re ready.
• Step Away from the Toolbox – If you haven’t already renovated the kitchen, painted the basement or refinished the floors, you may not need to. In my experience, too many homeowners fixate on doing “just one more thing” in order to get the house ready. Admit it…you’re procrastinating. The bottom line is that your real estate agent (and yes, you need one) can help you identify the must-do and don’t-need-to-do projects to make your home ready for selling.

HOME BUYERS, GET READY TO BUY

• THERE’S A LOT LESS THERE THERE – OK, you got the message. Fewer home options means more competition among the buyer ranks. But that’s no reason to keep yourself from buying a home now. As consumers start to turn their attention towards holiday gift shopping, there will be fewer house hunters looking at those few homes for sale at this time of year. Bottom line? Call your Buyer’s Agent now and schedule some showings before someone else does.
• MORTGAGE RATES ARE STILL GREAT – The seasonal slowdown in the housing market means that lenders want your business. Combine that with the fact that rates have stopped rising, then what you get is a great opportunity to shop around for the best deal and then lock in a great rate when you buy your new home.
• COMFY SHOES. CHECKBOOK. OH YEAH, A REALTOR! – “Be Prepared” isn’t just a Boy Scout motto – it should be your mantra while you venture forth into the home-buying whirlwind. It’s easy to know what you want in a home but it’s not so easy to navigate the choppy waters of real estate especially if you’re a first-time home buyer. Do yourself a favor and hire a Realtor to help you through the process.

For more real estate tips or to sign up for a FREE “Home Buying 101” Tutorial, contact me at www.GoHomeWithMichael.com.