Apparently, a crazy real estate market is becoming somewhat normal. It’s definitely worth talking about, but first, let’s just dispense with commenting on the lack of blog postings around here lately. It happens every year, despite my best efforts to stay on top of things. I apologize if the lack of my pearls of wisdom in your inbox has been causing you undue stress, but you know that if I’m faced with choosing between blogging or dealing with the crazy real estate market, I’m going to choose dealing with the crazy real estate market every time.
Let’s talk about that crazy real estate market for a few minutes, shall we?
I’ve posted a few times in the past several months about how crazy our market is, and every time I hit the “publish” button, it gets crazier.
Folks, the trend is continuing.
A while back, I started posting a market conditions snapshot on the front page of this website, so you could very quickly see how things are going, and what kind of market we are currently experiencing. What I’ve discovered, though, is that the snapshot really doesn’t tell the whole story.
I’ve revised the format of the market conditions snapshot on the front page a couple of times, but I finally decided to bite the bullet, and post an expanded version of it that compares the most recent month with the end of the previous year so that you can see what the trend looks like. The abbreviated version is still on the home page, and the new, expanded market conditions snapshot is on its own page, with a link on the menu bar at the top of every page.
Understanding the market conditions
It doesn’t make sense to just randomly post a bunch of numbers and call it a day, so what do all those numbers mean? Well, for this month, they mean that we are in the middle of a crazy real estate market!
Real estate markets always swing back and forth. If you dig around a bit, you’ll find posts on this site talking about being in a buyers’ market. Now, we are in a strong sellers’ market. Someday, it will move back to favoring buyers. In tiny bits, it already is moving that way.
So many things influence the real estate market, that it can be very difficult to predict when it will change, and how fast it will change. By keeping an eye on the trends, we can see it changing in just about real time. That’s the value of having a table of market statistics that can be referred to over time. Now that the implementation of our new MLS platform is complete, we can start keeping track of the numbers again. For a while, we couldn’t do that.
It’s one thing to say that we are in a buyers’ market or a sellers’ market, and quite something else to know what to do about it. If we’re in a strong sellers’ market, should we avoid buying? Absolutely not! It just means that conditions favor — in this case, strongly favor — the sellers. In fact, buyers might want to hurry up and get moving before the conditions push them completely out of the market.
Why? Because when we say, “buyers’ market” or “sellers’ market,” we’re really talking about how fast properties come and go in the marketplace. The faster they get sold, the stronger the sellers’ market; the slower they get sold, the stronger the buyers’ market. Despite what “kind” of market it is, the price of the properties tends to go up. If buyers wait around until conditions are more favorable for them, they might find that the entry price has moved beyond their means. At the least, their monthly payment will be much higher than it would have been. If the interest rates start going up, too, it will make the buyers’ situation much worse, very quickly.
That would be not only crazy, but painful.
Randall Brennan, REALTOR
Certified Negotiation Expert
Certified Investor Agent Specialist
Certified Distressed Property Expert
Certified Military Housing Specialist
So what’s next? Take your pick.