Yes, more than ever before. There is a pent up demand that the dam is going to burst. Look at Figure A. It is much more costly to rent than it has been historically; yet, it is more affordable than it has been historical to buy a home.
Do you think interest rates are going to skyrocket and leave people behind in the dust? Look at Figure B. Doesn’t look that way to me. Yes, there is going to be gradual rate increasing; however, none that is going to scare potential buyers a way in the next six months. Quite on the contrary, buyers are going to be wanting to buy to avoid the rate increases.
It is all about timing. If you have been waiting to move, the next couple of ears is the time. Otherwise, the market will shift again to a more neutral setting. If you are on the fence, time to get off. Get your house ready to sell and MOVE!
Ladies and Gentleman, I am a data geek. Looking deeper into the stats is what gives me my cheap thrills. Data is a historical look into the market. Historical data is relevant because it can predict future events especially if you start seeing the patterns that they create.
Let’s start with Columbus Realtor’s latest Central Ohio Housing Report – June 2017. This report gives a general overview of the 5 counties that comprise of Central Ohio. It’s a good general report to give you a general bead of the Central Ohio’s health.
However, let’s take this a bit further and analyze on specific community – Worthington, Ohio. The information below is going to focus on Single Family Homes in the Worthington school district; however, this can be recreated for any location within Central Ohio, which includes homes in Franklin, Delaware, Union, Madison, Pickaway, Fairfield, and Licking Counties.
Worthington Schools Under 30 Cumulative Days on the Market
In the last 6 months as of July 14, 2017, there are 324 homes that sold Under 30 Cumulative Days on Market and of them 219 sold over original list price, and 256 where listed under $350k.
Worthington Schools Over 30 Cumulative Days on the Market
The over 30 cumulative Days on the market has a much different story to tell. 66 of the homes sold for less than the original asking price. Yikes! That to me says did not price the home well. Majority of them were on the market once and then re-listed, which goes to show that pricing it right the first time is crucial. Finally, 46 of the homes were under $350k.
Pretty simple as a seller, you will sit in this market if you don’t price it right. If you think you can get more, you cannot. You will sit, wait, and receive less in the end. As for the higher, end market being more difficult to sell, debunked in Worthington Schools. 68 homes that sold above $350k sold in under 30 days and 20 took over 30 days.
Sometimes it pays to be a back-up offer. I am usually not a big proponent of them as a buying agent because hopefully the first agent has coached their clients well, gotten them pre-approved with a good lender. However, with this fast paced market there is often times buyer’s remorse, those who aren’t qualified for a loan, or just don’t want to deal with issues that a home inspection may uncover.
As a listing agent, I’m all about it because it’s an insurance policy for the issues described above. Now, the buyer can still get out of the contract as long as they inform the selling party that they are proceeding forward with another contract. It is all a matter of understanding the risks involved in being a back-up offer and if the buyer as the patience to see if the primary contract will stick…