According to Coldwell Banker Statistics, the time of over-the-top bidding wars and double and triple digit percentage price increases is coming to a close. But that doesn’t mean a loss for the housing industry. It actually means we are beginning to experience a more stable housing environment where buyers and sellers alike can benefit.
According to the National Association of Realtors® (NAR), the median existing-home price for all housing types in June was 4.3 percent above June 2013. This is the slowest increase since March 2012. Industry watchers are citing slightly increasing levels of inventory as being the cause. This is good news for buyers who lost the battle when competing heavily to purchase their dream home last spring.
In the recent past, with significantly more buyers in the real estate arena than sellers, the environment was extremely competitive which raised prices dramatically. The market was never able to withstand that level of activity.
While we are still seeing pockets of bidding wars and jumps in asking price, a more stable real estate environment that is sustainable for a longer period of time is what we want and is beneficial to the overall health of the economy. The leveling of price appreciation and additional inventory will strengthen the market.
Home owners who didn’t enter the market this past year haven’t missed their opportunity. In an evolving environment, they just need to be more realistic in their expectations. When selling, the property needs to be well maintained, and properly priced on the market. It could take several months to sell and sellers need to be ready to negotiate. Buyers are still looking for and expecting value.
Market conditions, financing, price range, and inventory can all play a part in the home buying and selling process and these elements can vary from region to region and community to community.
If you want to learn more about price increases and how they will impact your home buying and selling goals, please contact Jo-Ann Reilly on her cell phone at 914-582-6467. She can guide you through the entire sales process. Don’t be fearful if this change is occurring in your community. In the long run, a healthy change will greatly benefit us all.