Homebuyers need to know what the houisng prices have done in the past in the neighborhood and area they are looking to purchase a home in. It can and does have an effect on the present value of the home you are looking to buy and what the future value of the home would be inf you decided to wait or wanted to sell in the future.
I give homebuyers a different array of statistics to look at. The normal trend is what has happened in that neighborhood over the past three to four months. This is waht the appraiser for the bank is going to look at. ideally, you would like to see three to four comparable homes sold in that time period. That is a good basis for the now. But what has the past trends been? Is the neighborhood having a high turmover rate? Are there a lot of foreclosures in the neighborhood? These are all factors that can affect the value of the home you are looking to purchase.
By past trends, I go back one year, two years and three years and sometimes four years. This will telll you home many homes sold and what the average price fo the home was that sold. It allows the homebuyer to see if there is a trend going down , up or remaing stable.
It allows them to see how many sold. Now, every neighborhood is going to have sales over the years. Some are going to be because of moving up to a larger home, downsizing or lifestyle change. But, the trends will tell you if there is an abnormal amount of activity in the area and neighborhood. And was it a one year wonder or a trend over a few years? If there is a high turnover rate in a neighborhood; you are going to want to know why...
Out of the homes that sold in the past, how many were due to foreclosure? Foreclosure prices in the past drove down the values of the homes in a specific area and neighborhood. What was once considered a rarity is becoming more the norm now. You want to know how many there have been. It will give you a good gauge of the stabiity of the neighborhood. It will also let you know if the pricing in the area has been skewed by the foreclosures.
Buying a home is going to be the largest single investment anyone ever makes in their lifetime. You want to ensure that the offer and ultimately the price you are going to pay for a home is a fair one. But, you want to know how that investment is going to do in the future. Eventhough we cannot predict the future; the past can give us some education as to what the future holds for us in value of the home...
Dave diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, November 9, 2010
Saturday, November 6, 2010
Considering An Offer On A home? What Are The Sale Price Trends?
You have found the home you want to put an offer in on. You are doing your homework in regards to the current market conditions of the home. Checking to see what has sold recently and what a fair price to offer on the house is. But how far back are you looking? What is the trend prior to the boom and post boom when the market went down? These are all factors you should be considering when looking at a house.
In the current economic state the prices are lower now than they have been in a few years. But what was the trend like prior to the market doing well? Why does this matter? A home is the largest investment someone is going to make in their lifetime. For most of us this is not only the place we are going to live and grow our family; but a place we are hoping will help us in our retirement years by growing the equity in the house. A good way to gauge the chances that the home we are buying is going to appreciate to a value that will be finacially benefical to us to track the trend of the home prices prior to the housing market boom, through the boom and post the boom. that average should be an adequate gauge of what the value of the home would be for us in the long term.
I recently did this anaylsis on a few homes and the results were quite suprising for me. We are all aware that the housing market is a fickle market. It is going to have it's ups and it is going to have it's downs. When it is up we are feeling proud of our investment. When it is down we are feeling sad about our investment. But, what is the average? Are we purchaing a home in the down below what the average should be? If so how much? Is it enough? those are only numbers you can decide.
One thing is for certain, the market is in such a state now, that buyers are doing mre due diligence to ensure that they are getting the best deal possible. But what are the long term market ramifications for the house you are looking to buy? By going back up to as much as seven years you can track the trends and see how stable the market has been and is going to be and what yoru future projected value may be based on history. then you can make an educated descsion as to the home you are looking to purchase.
Dave diCecco
Realtor/Broker
www.davedicecco.com
In the current economic state the prices are lower now than they have been in a few years. But what was the trend like prior to the market doing well? Why does this matter? A home is the largest investment someone is going to make in their lifetime. For most of us this is not only the place we are going to live and grow our family; but a place we are hoping will help us in our retirement years by growing the equity in the house. A good way to gauge the chances that the home we are buying is going to appreciate to a value that will be finacially benefical to us to track the trend of the home prices prior to the housing market boom, through the boom and post the boom. that average should be an adequate gauge of what the value of the home would be for us in the long term.
I recently did this anaylsis on a few homes and the results were quite suprising for me. We are all aware that the housing market is a fickle market. It is going to have it's ups and it is going to have it's downs. When it is up we are feeling proud of our investment. When it is down we are feeling sad about our investment. But, what is the average? Are we purchaing a home in the down below what the average should be? If so how much? Is it enough? those are only numbers you can decide.
One thing is for certain, the market is in such a state now, that buyers are doing mre due diligence to ensure that they are getting the best deal possible. But what are the long term market ramifications for the house you are looking to buy? By going back up to as much as seven years you can track the trends and see how stable the market has been and is going to be and what yoru future projected value may be based on history. then you can make an educated descsion as to the home you are looking to purchase.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Thursday, November 4, 2010
Brightmoor Subdivison Matthews, NC. Market Trends Nov. 2010
Brightmoor subdivsion located just outside the center of Matthews, NC. is a large family friendly neighborhood. Offerign two swimming pools, tennis courts, walking trails, and a play ground for the kids. Because of it's convient location and excellent school assignements this has been a popular place among families in the Matthews area.
The market has been a roller coaster of a ride the last couple of years. However; families still find Brightmoor to be a desirable location to settle down in. Below are the market trends for the past three eyars from November 1 through October 31 the following year:
3 years ago 18 homes sold for an average sale price of $226,419. They were on the market for an average of 40 days.
2 years ago 18 homes sold for an average sale price of $212,539. They were on the market for an average of 44 days.
Last year 8 homes sold for an average sale price of $180,413. They were on the market for an average of 92 days.
There are currenrtly 11 homes on the market right now in brightmoor with an average sale price of $216,173.
Though the home prices have streadily declined over the past three eyars; he days to sell is signifcantly below the market average. In fact; almost half of the national average. Thus keeping trend with the image that the neighborhood portrays...
Dave diCecco
Realtor/Broker
www.davedicecco.com
The market has been a roller coaster of a ride the last couple of years. However; families still find Brightmoor to be a desirable location to settle down in. Below are the market trends for the past three eyars from November 1 through October 31 the following year:
3 years ago 18 homes sold for an average sale price of $226,419. They were on the market for an average of 40 days.
2 years ago 18 homes sold for an average sale price of $212,539. They were on the market for an average of 44 days.
Last year 8 homes sold for an average sale price of $180,413. They were on the market for an average of 92 days.
There are currenrtly 11 homes on the market right now in brightmoor with an average sale price of $216,173.
Though the home prices have streadily declined over the past three eyars; he days to sell is signifcantly below the market average. In fact; almost half of the national average. Thus keeping trend with the image that the neighborhood portrays...
Dave diCecco
Realtor/Broker
www.davedicecco.com
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