summer saw a buying frenzy as people realized the market had finally turned.
Institutional Investors were buying any single family residence (SFR) under
$250,000 they could. Cash offers of $20,000 over list price were common. I had
22 offers over list price in five days on one property I listed!
June 2013 saw an unexpected interest rate jump of 1.5% in a week! This, combined
with already decreasing ROI’s as home prices rose throughout the year, was the
trigger for many institutional investors to slow their buying spree. In four
weeks the number of available homes for sale rose by almost 1500!
no major price drops are yet evident, homes are taking longer to sell.
Increased inventory means less competition and greater choice for buyers. This
winter will likely see a swing from a sellers’ to a buyers’ market with
stabilization returning in Summer 2014.
inventory means buyers’ can source great deals and sellers’ need to sell now if
they have gains they wish to realize. Otherwise sellers might be well advised
to wait till Spring 2014 to list their homes.
buyers are fearful of the rapid summer price increase but consider
2006 a 1500SF, 3 bed, 2 bth, 2 car, home in an ‘A’ location was worth
2010 it was worth $100,000.
2013 it is worth $150,000. This is less than 50% of past value and still
below replacement cost!
hear a 50% price increase and think Oh No!!! In reality, it takes something like
this to wake most people up! There is still much profit to be had over the
mid-term as long as you buy right! While the frenzy is over, there remain many
eager buyers, sellers and investors in the market. It is surprisingly, for the
time being, a very fair market for all. And how often does that
Author:Steve Bland Phone: 702-751-7071 Dated: October 26th 2013 Views: 10,122 About Steve: ...
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The Steve Bland Group (SBG) is an international, investment focused, Real Estate Company. Our focus is on loyalty, generosity and professional excellence to each other and our clients. Understanding the local market with respect to the global economy is paramount to our clients. We encourage an international culture and creative approach to traditional real estate.