"Ten years", they said.

Following the 2007-2008 crash in the real estate market the experts predicted it would take a decade to rebound.  Much to the chagrin of REALTORS® everywhere - it did.  2015 showed some promise, but 2016 was the first semblance of the market we'd all been awaiting - at least everyone except home flippers.

In 2016 mortgage interest rates were still near historic lows, lending restrictions had loosened a bit, and most importantly - sellers were ready to sell and buyers wanted to buy.  The surge began in April and built through May with a June / early-July peak.  Homes were selling in a few days, that previously took weeks to months.  Buying strategies became more aggressive and prices held firm.  The free market was at work, and in seemingly one day during mid-July - died.  The following six weeks were met with more questions than answers, more hand-wringing, and disappointment from owners and REALTORS® alike. 

Home sellers who missed the market and listed in late-July, August and September tried to catch lightening in a bottle and priced their offerings according to the summer market, but realized virtually no success, some lingering months before selling  for less or opting to try another time.  Their homes weren't worth less, they simply missed the window of opportunity to sell for more.  For the REALTORS®, it was a reset.  For the market, a correction.  Lost in the process were the appraisers who had no bonafide comparables for the early-mid market surge, resulting in many analyses coming up short.  For the late market REALTORS®, the high-end sales of early summer had to be explained away as a market that came and went.

2017 was better anticipated, though still rooted in hopefulness!  The market surge started in mid-March, a bit earlier than the year prior - built to a June/July height, and didn't fade until late-September / early-October.  Even then, the market maintained value, but was constricted by a lack of available homes to sell.  The 2017 market was feast or famine for home buyers, virtually every home I marketed for sale generated multiple offers and sold at or above asking price.  Obviously this is a perfect scenario for home owners as they can choose the offer with the best terms that match their needs and build to a price that rewards them for the efforts they'd put into their home.  For home buyers, the urgency and emotion of being the 'first' to submit their best offer, while demanding a response within an hour or two in order to restrict other potential purchasers from having an opportunity became commonplace.  There's no joy in informing someone they're not buying the home - I received numerous handwritten letters attached to offers describing their love for the home and their children's plans for a swingset in the back yard.  Unfortunately there were both tears and anger, this is the business of real estate.

The outlook for 2018 is somewhat similar to 2017, an extremely competitive market due to a lack of inventory.  Mortgage bankers have absorbed three separate rate hikes from the Federal Reserve without an appreciable increase in APR, that will likely change this year - but reportedly only about a quarter of a percentage point.

To make the most of your sale this year, it's not too early to begin.  In order to maximize your return there are criteria to be met in the way of condition, preparation and presentation.  We'll need to transition 'your home' into a salable asset that's marketable to purchasers across the socio-economic spectrum - attractive to all, specific to none.  Trends dictate value, especially amongst first-time buyers as their expectations are frequently established by what their friends and co-workers have done.  By working together now, we can establish timing and  focus on the details that will push your offering over the top!  I'm working with several now, and the overall feeling is that it's best to have time to accomplish their projects as opposed to rushing at the last moment - which will be reserved for your outdoor presentation.

So what does this mean for prospective home buyers?  Be ready.  It's not enough to simply call for a pre-approval, you've got to be educated and prepared for the market ahead.  I've developed numerous strategies to insure the purchase offers my buyers submit are not only viewed in the best possible light, but also to leverage the terms most important to them.  I'm happy to meet with you to develop an action plan to meet your goals.

For those looking to sell, then buy it's a whole new ballgame as we'll work through the near certainty of the sale concurrently with the competitiveness of a purchase.  There's no guaranteed 'right way', but many unfortunate 'wrong ways'.  Again, the value of a plan with appropriate contingencies is unmatched.  The 2018 market won't wait for haphazard decisions, it's always better to pass on a good deal than to buy a bad one.  Together we'll script goals and plan for the smoothest possible transition to your dream home!

With proper planning and appropriate strategies, your 2018 move won't be a 'what if' scenario.  Put my 23 years of local experience to work for you, your financial and home ownership goals.  Contact me at your convenience, 937-985-3223.

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