Friday, June 11, 2010

What Are Market Reports And Trends?

As a Real Estate Broker we always seem to be talking about market reports and trends. But what does it really mean to the consumer.

Well market reports tell you a lot about a neighborhood you may be considering to purchase a home or sell a home in. It can make a difference in what you offer for a home as a buyer or a seller. When you read about market reports and trends the items you are looking for are sale prices of homes. Have they trended up or down over the past few years and months? How many days are they on the market before they sell? How many homes are for sale in the area comparable to the one you are looking at or selling? How many similar homes have sold in the past 12 months? These questions can tell you a lot about a neighborhood and what to ask for a home or offer on a home.

On sale prices of homes; are home prices falling, rising, or staying relatively the same. This is a huge indicator of how the market is doing in that area. No two areas are going to be the same. As economists like to blanket cities as a whole certain pockets do better than the average and others worse than the average. You need to be aware of this when you are looking to buy or sell a home in a certain neighborhood.

Days on the market can play a role in the pricing of a home. Some subdivisions or areas homes tend to sell quickly (by today's standard) and others homes can be on the market for a longer period of time. This is probably more important to someone looking to sell their home. It will give you a guage that if you are in fair market value for the area on how long you can expect your home to be on the market before it sells.

The amount of homes in an area plays one of the biggest factors in selling and buying today. A balanced inventory is when there is enough homes on the market to sustain a six month supply of sales based on previous year sales. If there is less then it is a seller's market. If there is more then it is a buyer market. We all like to see homes sell quickly but this is an average that economists and Realtors alike agree equals a balanced market.

That is why knowing how many sold in the past 12 months with the available inventory will give you a good sign if you are in a postion of strenght or not in the area.

There is my two cents on what market reports and trends are designed to tell the average consumer who is thinking of buying a home or selling a home.

Dave diCecco

Realtor/Broker

www.davedicecco.com

Thursday, June 10, 2010

Crestdale Crossing Matthews, NC. Market Trends June 2010

Each month I discuss how the market fared in the past three years in areas I specialize in. I try to let people know the trends that are happening in the areas and how prices have been affected by the economic situation.

Crestdale Crossing in Matthews North Carolina has seen a trend shifting in the opposite direction for the past three years in volume of sales. Ironically though people are staying in the community. There is fewer homes on the makrket now than ever before in this 110 home subdivision in Matthews.

Three years ago homes in here were sellign at a rapid pace. From June of 2007 to June of 2008 there were 16 home sales at an average price of $129475. Homes were on the market for an average of 77 days then.

Two years ago there were only 6 home sales. The average price of those homes was $129650. They lasted on the makrket for 26 days on average.

last year there were 4 home sales. The average price of the homes was $126,000. They were on the market for an average of 93 days.

The trends this month for year to date numbers seems to be tracking well with the numbers for May. Home sales have stabilized in the neighborhood. People are staying here and not moving as much.

Currently there are 4 homes on the amrket which based on last years numbers is a 12 month supply of homes for sale.

Dave dicecco

Realtor/Broker

www.davedicecco.com

Monday, June 7, 2010

Foreclosure? A Great Deal...

Lately I have noticed an influx of buyers asking em the same question. "I want to look at a foreclosure because I can get it signifcantly less than other homes in the same area". Well that may not be as true as it once was.

Banks have been taking a huge financial hit to their bottom lines on foreclosed homes. The cost involved to get the home foreclosed and market it is proving to be economically unsound. And in addition, if the home is not priced significantly below market value people are not looking at them. I have noticed a trend in two different avenues right now.

First, I noticed more and more banks are accepting applications for a short sale. They are letting the homeowner know they are going to work with them to help get the house sold before it goes to foreclosure. It is a win win situation for everyone. A short sale alleviates the bank form the unnecessary costs involved in foreclosing on the home and maintaining it while they sit and wait for an offer to come in. For the homeowner they get to stay there until it is sold and the impact on their credit is not as severe as a foreclosure would be.

Second, banks are beginning to repair and fix homes before selling them. In the past when a bank took over a home through a foreclosure it simply used one of their Realtors and had them put a sign in the ayrd and put it on the world wide web for X amount fo dollars. gradually they lower the price until someone bought the house. The home was sold in "as is " condition and the bank did nothing to help the resale of the home.

Well the times seem to be changing in the Charlotte area at least. I had the home next door to me go to foreclosure. Fannie Mea ended up with the home. Structurally the home was in great shape. Cosmetically it needed some work. nothing though that a new stove, some paint and new carpet could not fix. Well, Fannie Mea did all of that to the home. Now the home shows like it is a model home. Thus they are asking and received an offer for fair market value for the home in the neighborhood.

So, looking for a foreclosure and thinking you are goign to get a great deal. You are. the wquestios is that is the deal goign to be in the repairs done to the home for you or in the price fo the home.

Dave diCecco

Realtor/Broker

www.davedicecco.com