The other day I was asked by one of my sellers if they should take their home off the market. I understood their frustration and disappointment. After I spent some time on the phone with them, I decided to send all my listing clients a summary of our discussion. I hope this is as valuable to you as it was for them. And please, feel free to call if you have questions or if you would like to talk about it.
Thanks,
Should we take our home off the market?
We are in a changing market. The central Minnesota housing market is transitioning from an extreme buyer's market to a mild seller's market. (That's good news for sellers.) Home buyers have held the upper position over home sellers for sixty plus months. The following data represents the first four months of 2009 compared to the first four months of 2010. The data shows a change from extreme buyer advantage to seller opportunity.
The number of homes for sale is down 6%. The significance of this six percent is magnified by understanding that we are at a five year low in homes for sale.
The average sales price is positive and up 2% from 2009. What is more significant is that we have experienced four consecutive months of appreciation.
The total number of homes sold is up 25% from the prior year. The combination of increased sales and fewer homes on the market leads to relative scarcity of homes available to buyers.
The number of days a home is on the market prior to selling is decreasing. Admittedly, five fewer days is not a big difference. But it is a change in direction for the first time in years from an increase in days on market to decreasing days.
The final factor is in the percent of foreclosures making up the market. Currently, foreclosed homes for sale make up only 4% of the total market. Remember, we survived the months of twenty to twenty-five percent of the market being foreclosed homes for sale.
This is a changing market and all of the above data is good news for sellers and current home owners. I believe that every agent who actually sells homes will tell you that now is the time for patience and perseverance. Patience by the home sellers as their agents persevere with the exposure, marketing and promotion of their homes. A second truth to keep in mind is the impact of price adjustments. Lower prices always bring an increase in interest. Of course, in a stable or changing market, this strategy has to match the seller's personal motivation to sell.
Was the May housing market dead?
As a team of Realtors, we study market tends and track the results of all of our marketing. We are concerned about the dip in May's performance. But, we experienced the same dip in sales when the first tax credit ended last November. And the end of the last credit did not have the advantage of warm weather, the school year ending and prime market time following it. We are looking at business as usual with no artificial incentives for buyers or sellers. Our attitude is optimistic.
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Tami DeLand and Steve HansenSaint Cloud and Central Minnesota REALTORSColdwell Banker Burnet(320) 258-6675---
St. Cloud Real Estate, Condos, Homes for SaleCentral Minnesota Real Estate---
Labels: advice to sellers
