People say the market is slow, especially at the upper end of the market. Contrary to what we’re hearing, sales are picking up. In the last month, EW sold 68 homes (a little better than 2 a day!), and in the high-end market – traditionally much slower to catch up with the rest of the real estate market – we’ve closed four sales over $750,000. Has Spring sprung?
What are some of the factors that may have gone into this increase of activity?
First: I think the weather always helps. In the last four weeks there have been no major winter storms; a nice climate always seems to bring Buyers into the marketplace.
Second: the other climate, the real estate climate – both Buyers and Sellers are starting to be more comfortable in the current real estate market.
What do I mean by this?
Buyers concerned about employment are starting to realize that the economy is showing positive signs and this has tempered their unemployment fears. Interest rates have been historically low for some time now, so many of the Buyers we see in the market are out here trying to take advantage of today’s rates. I’ve written before about the perfect storm for Buyers of low prices AND low rates.
Sellers also have started to recognize what they need to do in order to have their home sell in today’s market. The first period of a real estate market correction (the transition from a “Seller’s Market” to a “Buyer’s Market”) usually includes a time in which sale prices remain high. This period has pretty much ended. Sellers are much more careful and making educated decisions about pricing their homes.
Weather notwithstanding, the “Spring Market” does seem to start earlier and earlier each year as Buyers hope to get into the marketplace before others, and Sellers prepare their homes for showing with their gardens in bloom. And the Groundhog saw his shadow this year, right?
If I can end this post with a piece of advice it would be specifically for all of the Buyers on the sidelines to stop waiting for the bottom. Now is the best time to buy a house that I have seen in my 28 years in real estate.
Come and see our new office in Chestnut Hill, or visit us in Rittenhouse Square, and let us help you buy or sell a home.
Posted by Paul Walsh