Housing Market on the Upswing
I am happy to report that the past few weeks have been a delightful surprise in many ways. I am representing several buyers who are relocating to Alpharetta, and when I called to make appointments to show houses, it was unbelievable how many of the houses they wanted to see that just went under contract.
This is great news for the economy; however, not such great news for my clients. Buyers have been sitting on the fence thinking that the market is going to get worse and that they should wait to buy in order to get a great deal on a house. I am here to tell you that you may have waited too long.
Just last week, I made an offer on behalf of my clients on a house that had been sitting for more than two years. On the same day, another offer was also made on the same house. It is a reoccurring theme in this market. I am told by my fellow brokers that this scenario is happening to them as well.
It seems as though the hot market right now is $1,000,000. We have not had many million-dollar homes dumped on the market by way of foreclosures so the deals aren't there anymore. The $300- $400,000 market was very strong during the early spring and summer months of this year.
The way I see it.. this is a trend. The market is correcting itself. It may not be as fast as we want it to be and house prices have not really increased, but they certainly will increase when the inventory is gone through — good old Supply and Demand.
So I hate to tell you "I told you so," but if you have been reading my blogs, you will recall I have been saying "now is the best time to buy." The market is getting thin for great deals and great houses. You do not want to be stuck with the houses that are in terrible condition because you waited too long to buy your next house.
Rebecca Dumas
7:08 am on Friday, September 23, 2011
Good information! I love the point that the market is correcting itself. Things will continue to get better, it's nice to hear some positive information.
Rebecca Currie
9:30 am on Wednesday, October 19, 2011
I don't know why there isn't more positive news about real estate. There certainly is a price range that is flying off the shelf. It is incredible that it is the million dollar range, but it is true!
Ann Marie Quill
11:56 am on Wednesday, October 19, 2011
Rebecca, why is the million-dollar range hot right now?
Rebecca Currie
12:13 pm on Wednesday, October 19, 2011
The million dollar price range is hot because you can buy so much more for the money than two years ago. Most of the buyers are people who wanted to be in a 1.5 to 2 million dollar home but could only spent 1 million. The first houses to go were the "new construction" where builders were filing bankruptcy and letting the house go back to the bank. Since the bank is not supposed to make a profit on the foreclosure, the buyer would get an automatic 25% off of the price of the house. The houses that were bought by people who were buying way over their head also went into foreclosure and the banks wanting them off of their books ~ again great deals for the new buyers. I am amazed at the number of million dollar buyers. The stock market is too frightening for most people and they believe that the housing market will get better, so they are betting on a smart purchase to increase in value over time. They are not house flippers, they are relying on the fact that they will live in the house for awhile and that the increase in value will be there when they decide to sell down the road. Not to mention: they are getting a heck of a deal right now, to the point that the market is almost depleted of million dollar properties. It is not uncommon for me to call on a property for my purchaser and the house is already under contract.