Hope everyone is having a good 2016 so far. We have hit the ground running. Really though, the market didn’t stop. So much for the “slow season”.
I have the MLS open as I write this. Right now there are only 83 homes on the market in zip codes 22315 and 22310. If we were in a dark basement in Alaska and someone told us that number, I’d know exactly what the market is like. There are many zip codes this applies to, but let’s start with these.
When you think of 83, that may sound like a lot. But first think if you were selling a single-family detached home for $700,000, a condo that’s on the market for $239,000 isn’t competition, is it? Also, out of that 83, 24 of them have been on for over 90 days. So they are either overpriced or don’t show well or both.
This shows us that the inventory is very low….if a really nice home goes on, and it’s priced correctly, it’s likely to get quick interest and not last long. The open houses we had last weekend were jammed with visitors. Even some homes that have been sitting are getting offers. Our Buyer Agents are encountering multiple contract situations.
Low interest rates, and the likelihood of them going up coupled with low inventory is currently driving the market. More homes will likely go on the market each week leading into the spring….we’ll be watching the absorption rate closely. For example….in the above zip codes, there are 37 available townhouses. There are 38 under contract. So not even a month of inventory. For detached homes there are 31 available and 28 under contract. For condos, 16 are available and 17 are under contract.
So what do you do with this knowledge? If you are selling, make your house look great. The market will reward you. Price it correctly. That is at the high end of what it is worth, not at the crazy, unrealistic pie-in-the-sky price. No one gets multiple offers when they are overpriced.
If you’re buying, do your homework of course. But when you find the “right” property that feels like home, if you don’t make a good solid offer, someone else probably will. If you have good taste and love it, chances are the next buyer may feel the same way.
We sold over 300 homes last year and whether you are selling, buying, renting, or need property management, we’d be happy to help you.