At the shopping market. Around the dinner table. At the office. The big question of late is “What happening with the economy?”
The bad news: Depressing economic and housing data is everywhere. National and local media continue to provide evidence that the economy is down and that the housing market is in turmoil.
The good news: Things may not be as bad as you think. Especially here in the Treasure Valley.
Homes are still selling. Over 1,600 homes have sold in Ada County in just the last 90 days. That is an average of more than 17 homes selling every single day. The problem isn’t that homes aren’t selling. The problem is that there are so many homes on the market. However, with over 500 homes selling each month and with the rate of new-construction near zero, you can rest assured that the balance between supply and demand will ultimately return to more typical levels.
However, until balance is restored there will still be challenges in the market. So, what does this mean to you, today?
Buyers: It's an incredible time to buy! Prices are down, there is a great selection to choose from, concessions from sellers are readily offered and interest rates are low. Word of advice: look for the right home for you at an attractive price. Yes, there are some great opportunities in short-sales and bank-owned homes but don’t allow a great deal to push you into a home you otherwise wouldn’t be interested in. Be educated, be informed and be represented!
Investors: This is a great time to invest. Instant equity opportunities abound. High-level savvy investors are beginning to re-enter the market and purchase properties at discounted levels. Investment activity is often an advanced indicator of a market-bottom. If you are considering investing don’t wait to long. This winter might be the time to act.
Sellers: If you can wait to sell your home you probably should. If you must sell now you need to be realistic. There is a large inventory of homes on the market and competition is fierce. Be aware of today’s market conditions and price your home correctly. Generally speaking, if you’re not in the lowest 20th percentile of the market then your home will go unsold. An unrealistic price today will add more months of payments, lost time and more stress. Price it right the first time!
Sellers try to keep everything in perspective. It is a great time to buy, but it’s a double edge sword, it works both ways. If you are upgrading in homes you will be rewarded as well. If you are selling a $200k home, most are selling for 4-5% less of the final asking price. The more you go up in value the larger that % is. You upgrade to a $350k home and save 10% you are giving up $10,000 to save $35,000.