If you talk to 100 people, you are going to get 100 different versions of how the real estate market is doing right now. Some would say that since we are inching toward a balanced market, that we are post-recession. Others, noting stagnant inventory and lackluster price growth believe we still have a ways to go.
Since we are asked about the state of the market on a daily basis, we’ve developed a short list of objective truths that we share with clients and friends.
NATIONAL INVENTORY IS UP
This is the first time in a long time that we are seeing housing supply/inventory increase on a national level.
INTEREST RATES ARE UP
Rates are fast approaching 5% and we expect them to surpass that mark soon.
% OF ORIGINAL PRICE TO CLOSE PRICE IS UP
This is a tabulation we make based off of the original list price, compared to the price at which the home sells. In the Barrington area, homes are selling for an average of 1% less than their sale price.
LOCAL MARKET TIME HAS REMAINED CONSTANT
Market time has hovered around 65 days for the past several years in the Barrington area, which makes sense since inventory has remained constant.
LOCAL INVENTORY HAS REMAINED RELATIVELY CONSTANT
Barrington area’s inventory has hovered around seven months for the past several years. Seven months of inventory would indicate a buyer’s market since there is so much supply. A balanced market is right around 6 months.
So what does all this mean for you?
IF YOU ARE A BUYER
Our advice to you, is to really take the time to figure out exactly what you are looking for, and then remain flexible. There is no one perfect house for you and your family. In our opinion there are a few that could make you very happy.
IF YOU ARE A SELLER
To set your listing apart from the rest, price it to sell from the start. This is not a market built for “testing the waters.” If your home is priced properly, it will sell!