What Kind Of Market Are We Really In? |
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Current Market Statistics |
Currently, for all price ranges in all of Bucks, Hunterdon & Mercer Counties, we are averaging 91 days on market and selling just over 90% of original list price, which means homes in proper selling condition and priced competitively are continuing to sell in our area in about three months (see Current Market Statistics). Recent news articles and statistics indicate that prices theoretically hit bottom last Spring (see In The News). That does not mean that prices are going up; it means that more sales are occuring, which is indicative of consumer confidence. The key factors are correct price, quality market exposure and proper selling condition. Selling quickly = more money for the Seller. |
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Is It A Good Or Bad Time To Sell? |
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| That's a common question, one that can only be answered by looking at your particular home, price range and personal circumstances. The best way to determine when to sell your home in any market is to look at your entire financial portfolio to see where your home fits in. It could be that selling now could benefit you in the long run, especially if your goal is to trade up to a larger, more expensive house. The days of inflated real estate and pie-in-the-sky prices are long gone -- the banks and appraisers will see to that. Statistically, even though we are considered to be in a buyer's market, our local market is not as negatively impacted as many other areas of the country. That's where the media can create uncertainty by painting "the real estate market" with an extremely broad brush. The truth is that treating the whole country as one market carries as much weight as giving an average temperature for the entire U.S. Even local markets vary greatly by zip code and price range. The recent economic crises, being a global issue effecting lenders and buyers' ability to get funding, has certainly affected all real estate markets. That being said, the Delaware Valley was hit very late in the real estate downturn and not to the extent that other markets have suffered. More good news is that, as of the beginning of August 2009, even the national media has begun reporting that housing prices have finally bottomed out, which will bring forth some stability (see In The News). |
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Who Is Selling Right Now? |
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| The most obvious would be those who have to sell, either because of a job relocation or a financial hardship. Another segment are those who are making a lateral move with the idea that what they don't make on the house they're selling, they will save on the house they're buying. Some saavy sellers are those who wish to trade up. If you don't have to sell because of a relocation or financial distress, there is a growing number of people taking advantage of the opportunities this market presents us with... those who wish to move up in price range. Think about it; it makes perfect sense, and smart investors are taking advantage. With the rare combination of low interest rates (currently in the mid-to-low 5 percents) and prices at stable lows, this is the perfect time to move into a more expensive house. Why? Because the percentage of reduced profit you take on the house you sell is the same expected percent of reduction off the price of the house you buy, if not more. |
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| EXAMPLE: | |||
| Say you would expect to sell your home for $500,000 and because of current market conditions you can only get $450,000 for it (a 10% reduction, or $50,000). If you are moving up to a house that would sell for $800,000 in a different market and take the same 10% off, you would be saving $80,000 on the purchase, a difference of $30,000 in your favor. Add in the low interest rates and you've made a smart investment in your future while enjoying a home you couldn't afford in a different market. The higher the price of the house you trade up to, the greater the savings benefit for you. Use the same example above selling a $1 million home and purchasing a $2 million home, and the savings benefit is at least $100,000. I say "at least" because the savings percentage is greater in the higher price tiers, as the luxury market has suffered much more in our current climate. |
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| With more and more sellers accepting *home-sale contingencies written into an agreement of sale, if you can't sell your house for what you expect, you're still protected. Real estate is still the safest long-term investment available, affording additional benefits of homeownership and opportunity for equity building. Don't let fear keep you from taking advantage of current opportunities. I'm sure there will be many people in the coming years who will wish they had not been afraid to act at this opportune time. *Home Sale Contingency - An addendum to an Agreement of Sale which states that the buyer must first sell their house in order to complete the purchase of another one. If the buyer cannot sell their home by an agreed-upon date, the contract to purchase can be cancelled and all deposit monies returned. |
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Contact me with questions, for current market statistics, and a free evaluation of your home in Bucks, Mercer & Hunterdon Counties |
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