You’ve probably read headlines recently that the real estate market shifts have occurred . Not only is it true, it’s been predicted by those that study the numbers. However, the shift doesn’t tell the whole story.
Just as we’re counseling sellers about the shift we see an uptick in listing calls and buyer contracts. So if the market is shifting, how can it be that business has really picked up in last few weeks?
Perhaps you’ve noticed in just the last week the roads have gotten busier. I sure have. And I went to one of those large warehouse stores over the weekend and it was packed. My wife and I both said “They’re back.” That’s not why we’ve seen an uptick in sales these past few weeks however.
We believe there is some pent-up demand. Buyers are desperately seeking homes in the $300,000 or less category, and we’re also seeing good activity in the $400,000+ range as well. We know the market as a whole isn’t as strong over $400k, so activity in this range is a good sign.
Real Estate Market Shifts
We’ve been watching official numbers and we are seeing declining closed sales, precipitated by declining pending sales, and increasing inventory. The numbers don’t lie and are indicative of a shift. Combine this with falling average sales prices and declining market volume and you know the shift is real.
So now that we know the shift is real, what can a seller do? Now more than ever it’s important to do 3 things.
1. Hire Experience- Agents who have worked and thrived through shifting markets are better able to guide through the experience.
2. Price it Correctly- You never want to get caught chasing the market down. Not all price ranges are going down. In fact, some are still going up. Knowing where your home stands against the competition is critical. Knowing where the demand from buyers is as well.
3. Marketing-Some agents say you can’t market your way out of a shift and it all comes down to price. While it’s true that if you over-price a home, no amount of advertising and marketing will sell it, sometimes correct pricing alone isn’t enough. This isn’t a bad market. We’ve seen those before and this is nothing like that. However, if it were a bad market, marketing becomes important because you have to do everything you can to reach the few buyers available for so many homes.
This is a shifting market, and that’s not necessarily a bad thing. The market is fairly healthy. Nothing goes up or down forever, and shifts along the way is a balancing act. It keeps both buyers and sellers equal where neither becomes too powerful, but it can be scary if you’re on the wrong side of the shift.
Knowledge truly is power. Knowledge leads to correct pricing. Marketing is power too. Marketing alone won’t sell your home, but it sure beats limited marketing. Think of it as a sporting event. Shifts are won or lost by great coaches. The talent on both sides are fairly equal. Each side (Buyers and Sellers) has their set of strengths and weaknesses. It’s up to the coach to guide the team to a win. The coaches right now are the full-time agents, and the agents with the most experience and winning track records are the ones to hire.
There’s a reason certain coaches win multiple Super Bowls. The top coaches are in demand, and teams pay them more money than first year coaches. It’s because they win, and if you’re a seller wanting to sell in a shifting market, you want to win. Hiring experience is the answer. So when the real estate market shifts, always go with experience.
We have a graphic in our listing presentation that reads “If you think it’s expensive to hire a professional, wait until you hire an amateur.” If you’re looking to buy or sell, call the pros at the Ellis Team 239-489-4042 or visit our website www.LeeCountyOnline.com and search the MLS like a pro.
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Future of Real Estate September 2016 Market Update