February 3rd, 2017
2017 off with a BANG
We have already blown through January 2017, how time fly’s as we move into high season where we will see the deserts highest seasonal population. With many events; golf tournaments, tennis tournaments, and festivals of all kinds, our beautiful desert continues to grow as more and more people come to the desert for a visit, and ultimately end up buying a home making the desert their full or part time residence.
Many sellers and real estate agents ask the following question? Will our desirable desert location, plethora of home inventory, and raising mortgage rates convert to stronger Real Estate sales and home appreciation in 2017?
It is important that we recognize the market is certainly not bad, as we continue to see decent sales volume in many price segments. The problem lies with high inventory levels, which far outweigh buyer demand. It is clearly a buyers’ market and buyers know it. When listing homes today, sellers must look at their home value in the eyes of today’s buyer, prepare their homes to meet their competition; in other words, looking their very best and strategically price it right, or the likelihood is their home will sit unsold.
Depending on price-segment I am currently seeing anywhere from 4-month to 36-month inventory levels throughout the desert. What this means in Realtor terms, it could take anywhere from 4-36 months to sell your home, if you are not priced ahead of the market, clearly showing buyers you are a motivated seller. Statistically speaking, the higher the price the longer it will take to sell. Homes listed over 90-120 days but not selling usually mean the asking price is just too high. Smart, serious sellers will reduce their asking price 3-5%, sometimes a little more depending on how many showings, which usually convert to a sale soon after.
We are currently experiencing a strong volume of inquiries, along with buyers doing discovery, many gun shy on pulling the trigger with their purchases specifically due to how many homes are for sale. We discovered the same last year as well as 2015, although it started later in the season.
Finally, I am optimistic we will see strong movement this year, though buyers will be taking advantage of a buyers’ market in most price segments and drive a hard bargain. Be prepared to negotiate. If you’re thinking of selling or buying, please feel free to reach out to me, I welcome your call.
For more details on sales numbers, please click here.