Despite a few challenges, there are many things both buyer and seller can find to be thankful for in our current real estate marketplace.
If you didn’t purchase a home and wanted to; if you didn’t sell a home but were thinking about it – you still have a couple of months before 2019 fades into the past and becomes just a memory.
The continuing low inventory levels have been a pricing boon to those sellers who take the necessary steps to take advantage of it. Year over year growth is still moving faster than normal at this time in the season and a true buyer’s market hasn’t come into focus as yet. However, the evidence points us in that general direction for the near future.
Nationwide statistics show a trend, with over 17% of home sellers reducing asking price in the last several months. Specifically, this has been the trend in the luxury market but slowly trickling down to other price points. The expectation is that with the currently favorable economy and low to moderate mortgage interest rates strong sales numbers will be evidenced for the winter season.
School district concerns continue to top the buyer priority list, with nearly 80% of purchasers claiming they would gladly trade a feature or two in the house they’ll buy to gain the school they prefer for their children. The research revealed that elementary school distance had more impact than middle or high school on what and how much a buyer would trade off in desired home features. Homes also tend to sell for slightly higher prices on average when located in districts offering the most desired benefits.
New home starts are minimal right now but that is more about weather than a reflection of demand for new housing construction. Once spring thaw begins it is anticipated that those permits to build will increase substantially. That will mean that those seeking a new home will have plenty of inventory to choose from in both new and existing homes for sale.
Those seeking to sell a home should not let the up and down reports of day to day data discourage them in any way. Buyer demand is still high across Essex County and inventory still hovers on the side of too thin so selling conditions remain favorable. In other words, affordability levels are favorable and should help keep housing demand steady in the coming months moving into the New Year.
Why should real estate trends interest you right now when winter holidays are the main thing on everyone’s mind? The health of the housing market is an excellent indicator of overall economic health and impacts rental rates as well as directly impacting job markets. Taking all the trends into consideration, there is much to be thankful for as we focus on the upcoming holiday season!