Wow, what a mild winter we have had with warmer than normal temps and no snow to speak of! It’s already starting to feel like spring.
Along with the spring season comes renewed optimism that perhaps the real estate market will begin to turn the corner. One would think that due to the nicer weather and continued low mortgage rates homes sales would be a bit more active. I think that we have seen somewhat of a spike, or perhaps the spring market may be starting a little earlier than normal. I have seen an increase in sales of some of the higher-end homes in the area and hopefully that trend will continue in 2012. With any luck this will spread to other price ranges as well.
Short sales and foreclosures continue to put downward pressure on the market. At least we can say that they are being bought by investors and buyers with patience. So they are being digested by the market. The question is when will they begin to slow down and dry up? Only time will tell. A stronger economy and job outlook would certainly help.
If you’re a seller, challenges getting that offer will continue. The competition is fierce and pricing will be the key. As I have said all along now is not the time to test the market. Make sure you are not overpricing your house. Ask your agent to show you comps in the area that have sold in the last 6 months and learn the market. Buyers today are savvy and will be comparing your home to other homes in the same price range. They will know with the help of their agent if your home is priced correctly. If you do get an offer and its low, work it, work it, and work it! Try not to take it personally, it’s the sign of the times and remember if you were that buyer in this market you would be doing the same thing. I have had deals done with offers going back and forth 6 to 8 times and the bottom line is we did come together on a price that worked for both parties.
If you are a buyer you have all the power and great deals are plentiful. Homes that were selling for $300,000 in 2006 are now selling for $200,000 and in some instances less. Money is cheap, and this is the best buyers market we have seen in a long, long time!
Here are some statistics from the Westchester/Putnam Multiple Listing Service regarding the number of homes currently on the market in Pawling in a given price range, and the number of sold homes in the last 6 months as of February 15:
$200,000 to $300,000 23 Active on the market and 5 Sold
$300,000 to $400,000 31 Active on the market and 3 Sold
$400,000 to $500,000 13 Active on the market and 1 Sold
$500,000 to $600,000 5 Active on the market and 1 Sold
$600,000 to $1,000,000 20 Active on the market and 1 Sold
(I know of 3 homes in this range that are now “Pending” in Pawling)
In summary, I think we are going to see a few more properties sold in the up coming year. Home values however, will not be increasing; we have a large amount of inventory that still needs to be sold and in the spring we will see more properties come on the market as well. So competition will continue to be tough for sellers. Price your home right if you really want to sell it! Buyers – great deals are out there, but in order to get the financing, you are going need good credit.
Good Luck Everyone!
Prudential Serls
14C East Main Street
[Audio:http://www.pawlingpublicradio.org/wp-content/uploads/2012/02/heart-of-the-matter-2-23.mp3|titles=Heart of the Matter 2-23]
