Across the country the market seems to weakening. Some areas are reporting inventory up to five times the year-earlier level. This is forcing sellers across the nation to slash prices. In most area it is a return to normalcy but in some areas like Orlando and Phoenix, things are expected to get worse before the get better. Ivy Zelman, a housing analyst, has referred to Phoenix as "total bloodbath." Orlando has reported the biggest surge in inventory and home prices are down between 3-7 percent from just a year ago. Some homebuilders are offering buyer agent commissions up to 10 percent. William Wheaton, a housing economist at MIT, thinks we could be in for five to ten years of flat home prices.
Selling Your Home on Your Own
July 21, 2006 – 11:31 am
Sell quickly and save
When selling on your own you should be realistic with your expectations - know your local housing market. Once you have a feel for how homes around you are selling you can develop a selling plan. Over the past year most metro areas have seen an increase in days on market, so as a for sale by owner you need to set goals and timelines. Current market conditions will determine an asking price as well, so you may decide to start at a certain price and keep it there for 15 days, if it does not sell offer a bonus - versus lowering the price - for 15 days, etc.
Flat fee MLS companies and other limited service providers offering services on an a la carte basis will also increase your marketing exposure. While there are no guarantees, over 80 percent of homes are sold through the local MLS. Getting listed in the Multiple Listing Service will provide you marketing exposure through literally hundreds and hundreds of public websites, that you otherwise would be missing out on.
Lastly, don’t be intimidated. Don’t be intimidated by the process, the paperwork, or agents out there that want you as their own clients. You are trying to sell your home at the best price and while retaining the most equity. Good luck!
Home Sales Post Biggest Jump in Years
March 28, 2006 – 9:48 am
Home Sales in February Exceed Industry Forecast
After economists forecasted a drop in the annual rate, home sales experienced the biggest jump in two years indicating a surprising strength in the housing market. The 5.2 percent rise from 6.57 million in January to 6.91 million in February was the biggest jump since February of 2004 according to the National Association of Realtors. These figures are based on when a home sale closes not when a contract is accepted. So the warmest January on record, coupled with the dip in interest rates may have aided in increasing the sales figures for the month.
While the median and average sales prices have reduced from January to February, sales levels are much ahead of where they were just one year earlier. Last year posted a median sales price of $189,000 and an average sales price of $249,000 compared to a median sales price of $210,000 and an average sales price of $256,000 for February 2006.
Reports predicting the real estate market to cool off from the record pace of 2005 now seem a little premature.
See Also
- Home sales post biggest jump in 2 years
Pace of existing sales picked up last month versus forecasts for a modest decline
Richmond, Virginia noted as affordable housing market
February 22, 2006 – 8:15 pm
Wall Street Journal says Richmond offers lower cost of living
A recent article in the Wall Street Journal’s Real Estate Journal today stated that Richmond, VA market is giving the D.C.- New York corridor a run for its money. "The area’s relatively affordable housing and lower cost of living has helped attract companies like packaging giant MeadWestvaco Corp., which recently announced plans to relocate its headquarters to the area from Connecticut, bringing an estimated 400 new jobs and giving the Virginia capital bragging rights to a seventh Fortune 500 company headquarters."
According to the article, Richmond’s third quarter median home price was $214,000, a bargain compared with Washington, D.C. where median home price was $441,400 for the third quarter of 2005.
See Also
- Richmond Is an Affordable Option
Compared to Northeast Real Estate
2006 New Homes Starts Up
February 16, 2006 – 8:21 am
January pace of housing starts tops forecasts
Incoming Federal Reserve Chairman Ted Bernanke told Congress on Wednesday that "a number of indicators point to a slowing in the housing market." And, "given the substantial gains in house prices and the high levels of home construction activity over the past several years, prices and construction could decelerate more rapidly than currently seems likely."
Most forecasters expect the housing market will avoid a catastrophic crash. Ed Leamer, director of the UCLA business forecast, said "It’s going to be a buyer’s market not a seller’s market — possibly for a long period of time,"
Despite Bernanke’s and Leamer’s remarks and widespread prognostications of a housing market slowdown, January saw the highest level of housing starts in over 32 years. The Census Bureau’s newest report showed that new homes construction is at an annual pace of 2.28 million homes.
See Also
- Census Bureau Reports New Homes Sales
Current Press Release - Federal Reserve Chairman - Bernanke
Transcript: Ben Bernanke’s First Congressional Testimony as Fed Chair