Spring Market: Going, Going... Sold

The spring housing market of 2013 is on fire. With interest rates at an all-time low, housing prices bottomed out and an extremely low inventory, many sellers are receiving multiple offers (many above asking).

And this is just not a local realtor’s perspective. Federal Reserve Chairman Ben Bernanke made recent comments regarding both low interest rates as well as the housing market: “The evidence thus far is that the housing market has hit the bottom… it’s recovering. Keeping longer-term interest rates low has helped spark recovery in the housing market…”  Money Magazine’s April cover announced "Housing is Back!"

Jeff Otteau, president of the Otteau Valuation Group, who is frequently quoted in the New York Times and Wall Street Journal regarding market trends, recently told a crowd of realtors and investors at one of his quarterly seminars that this was going to be one of his most optimistic forecasts in years. He went on to say that “the sense of urgency is back for buyers and prices are rising.” He projects a 3.5% rise in prices this year and hopes that is where it caps for the health of the market. He stated this is a perfect storm for the housing market to improve with historically low rates, home prices stabilizing, consumer confidence rising, purchase demand rising, and unemployment decreasing.

It is finally starting to sink in and people are listening and realizing the time to buy is now - and often coming to the table, cash in hand. Buyers are trekking to the burbs by the dozens, vying for an ever decreasing supply of beautifully updated charming period homes that the vibrant communities of South Orange, Maplewood and Millburn / Short Hills and surrounding towns are known for.

Towns along the NYC Midtown Direct train corridor are a coveted destination for urban dwellers from New York and areas east looking to stretch out and breathe amongst a friendly and diverse community-minded population.  Our towns are being called “The leading global suburbs of New Jersey and the New York metropolitan area” by GlobalSOMA, a recently founded group of visionary community members.

But finding that home has turned out to be a competitive business. According to the National Association of Realtors (NAR), total housing inventory dropped by 4.9% by the end of January. Inventory is at the lowest it’s been since April of 2005. NAR Chief Economist Lawrence Yun recently stated “Buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly.”

Anyone who reads my Facebook business page will know that I recently cancelled two open houses in the span of two weeks due to my sellers receiving offers they couldn’t refuse. That’s the reality of the housing market right now. See a home you simply love? Have your mortgage pre-approval and paperwork in hand and go for it.

And to the homeowners who have been nervously wondering if the time was right, perhaps waiting for the sign to go ahead… list it now. Motivated buyers are here… your much-loved home could be another family’s dream house. Local realtors are now talking about revolving door showings… where homeowners don’t just need to step out to accommodate the occasional showing, they now have to be out all day for back to back showings. Sellers are receiving multiple offers – but not all. Buyers don’t act on something that is grossly overpriced – even with the low inventory.

So recognize the competition and invest in that paint job or update that is long overdue… buyers are looking (read expecting) it and are willing to pay for a beautifully renovated home. If you are a seller, don’t miss your chance to join in on this housing phenomenon.  

Caroline Gosselin is a Maplewood resident and local mom, whose son attends Kindergarten at Clinton Elementary school. She is a local Realtor with Prominent Properties Sotheby’s International Realty. She is also on the board of the Maplewood Chamber of Commerce and volunteers for many local organizations, including the Achieve Foundation and the Maplewood Rotary Club.