Buh Bye Foreclosure Market
An era in Real Estate is finally ending. When I first started in 2007, all I heard about was how Real Estate was “getting worse” and how crazy I was for getting into the business now. One in four properties were “lender-mediated” property (in the public eye this genre were the foreclosures) in 2010. Three years after I started, I will be honest, it was bad. My family and I survived as a team and that is the only way we got through this period of time. The year 2011 was definitely the bottom of the market. I was seeing how it was affecting our industry. To see something come to a complete standstill and have very little time to build up a referral business, was quite scarey.
Now, flash forward to 2015. We are looking at one in ten homes classified as “lender-mediated” properties (i.e. foreclosures). Wow, what a difference. The market has picked up for the majority of homes. The decline in prices has, for the most part, ceased. There are a few areas left but, in most cases, the Foreclosure Market as a dominant way to sell a home in Central Ohio is at an end.
So what does that mean to you, the consumer?
The real estate market is headed towards normalization, I hope. We measure how quickly homes are selling by calculating Months Supply of Inventory. Basically, this is how long the Realtors have to sell out the inventory in the Multiple Listing System without adding new properties. September 2015 still has the Months Supply of Inventory at around three months for Central Ohio. That is on the extreme end of low. A normal, healthy market is around six to seven months supply of properties.
No cause for fear. Low numbers generally mean that the sellers have an upper hand in the market. It means that there are buyers who are out there looking with little inventory to view. It doesn’t mean that there is nothing on the market. There are some things. Buyers just need to be more patient. Sellers… Well, sellers, if you play your cards correctly you could be sitting pretty. But, if you are doing a sell and a move within the same area, it could be tricky. Back up plans, contingencies, and possession times are highly recommended if your wish is to move up.
If you are a numbers enthusiast, take a look at:
Central Ohio September 2015 Stats from the Columbus Realtors® Area September 2015 Stats from the Columbus Realtors®
Q3-2015 Lender-Mediated Properties Report