The Market Warming After A Cool Fall

02/02/2004

What can I say, it is the end of January and as per usual the market is just in the beginning stages of warming up as we head toward the spring. More listings are coming on the market, some of which, unfortunately, did not sell last fall, but are back to face the birthing stages of the 2004 market (often with new prices).

After a surprisingly sluggish fall and Christmas market, I sense a pent-up demand about to release. The market generally works like a pendulum, the experience of one extreme demands a future, equal and opposite reaction. From all the signs that are present today, I would say we are in for a brisk, late winter/spring market, beginning now.

Being an election year at home and across the boarder, market driving, low interest rates are likely to continue for the balance of 2004. This will be extremely positive for buyers and seller alike. Nevertheless, I have one word of warning to would-be Sellers – do not get too greedy. The last six months have produced a large number of expired listing from all brokerages alike. This is something we have not seen since pre 1998 (the dawning of the Seller’s Market we currently enjoy). The number one reason a home does not sell is price. As a Seller’s-market begins to tail off we often find high numbers of expired listings scattered throughout the market (just like right now).

With prices leveling, I would suggest setting a competitive list price 2 or 3% above what similar homes have sold for (not listed for) in the previous 90 days. If you follow my advise you will almost definitely sell quicker and for more money than your pie-in-the-sky, overpriced competition. The market may even see a slight increase in average sale price again this year, however, now as always, the listings on the market priced 10 and 12% above market value are just sitting there. So if you are serious about selling, hire a reputable Realtor with a strong track record and a tangible marketing plan – Choose the right price and start packing. Thanks for listening.

Till next month, this is Rob Thompson saying, “Good Luck and Good Selling!”

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