Our Key Market indictors are in for February 2008 and it's great news!
As reported from our CEO of Long Realty Companies, Rosie Koberlein
For our buyers:
- A 22% reduction in Days of Inventory along with a 20% increase in closings vs January ’08 indicates increased level of buyer activity. Downward pricing adjustments have made homes more affordable, buyers are realizing more that there are good deals available, buyers that were previously priced out may now have an opportunity to jump in, and buyers feel confident enough to purchase, most likely realizing there will be Long Realty term pricing appreciation opportunities.
- If DOI (Days of Inventory) continues to trend lower that will put upward pressure on buyers to act, so now is an ideal time to negotiate the best deal on the home you want.
- Enough time has passed since the market has shifted that serious sellers are now more open to work with buyers to result in a sale.
- Buyers need to work with a knowledgeable Long Realty Realty REALTOR that can help them navigate through the inventory and local market data to secure the best value on the home they want.
- It is a great time to trade up. Example: If market pricing is down 10%, and you are selling a $250,000k home, then your adjusted sales price would be $225,000. However, if you were looking to purchase a $400,000 home, adjusted downwards by the same 10%, then your net gain is $15,000.
- While down payment requirements from lenders may have increased in our area recently, new FHA loan limits in Pima County are now $316,250 (Pinal County $346,250) and minimum down payment for FHA is 3% - meaning buyers may have additional financing options.
For our Sellers:
- While DOI has decreased since January, there still remains a considerable amount of inventory on the market. In competitive situations like these, it is important to have an effective marketing plan which includes proper staging, marketing exposure and most importantly a pricing strategy that places the home in the lower 20% of pricing on comparable homes on the market.
- With the credit crunch, buyers are now putting down larger down payments – meaning they are most likely more serious buyers than in the past when a home could be financed 100%.
- Buyers are looking for deals, it is important to be open during offer negotiations and consider all offers carefully.
If the increase in buyer purchases and reduction in DOI continues as a trend, we may be seeing the initial signs of market stabilization. Something you should keep track of monthly as a homeowner, and with your permission we would be happy to contact you with monthly updates on the market, every month. Simply email Charles or Steve to request an update.