By Barbara Lehrer
Real Talk
Barbara Lehrer
If you hadn’t noticed, the real estate market is switching gears a bit. Most homes are on the market longer than just a few days, and without multiple offers. Clients in the market to buy or sell can take a breath. Even if you are the seller, the former frantic market often resulted in cancellations, back on the market movement or, in some cases, mortgage qualifying issues for the overeager purchaser.
Prices are still maintaining a definite upper range from two years ago. Connecticut, and specifically our Milford-Orange market, are as hot as ever with buyers coming from other areas as well as within New Haven County. This is a great time to sell: inventory is low, so if you price your home fairly and it is in good condition, there are plenty of eager buyers out there.
The behavior of buyers and sellers has changed. As the market fluctuated with high prices way over reasonable values, buyers were frustrated with overbidding and eliminating some of their contingencies, such as inspections and appraisals.
As a leader in the local real estate industry, I can tell you that enough time has lapsed for new owners to share their problems of having bought without complete inspections and at very high prices. The costs were not what they expected. Those still looking to buy are learning to be cautious and take their time, especially with inspections.
Market evaluations are statistics that explain how much a home should be selling for, mostly based on matching the style and square footage of properties recently closed. The condition of a property is often overlooked if it’s in a great location. Using the last six months’ sales, which are homes that went on deposit as much as nine months ago, we can see that those prices were elevated. Now let’s concentrate on the condition of the home, which is usually what is at stake where expenses are concerned. Of course, buyers jump for location, and all those prices were hefty and substantial. Now buyers see more inventory may be sitting longer, so they are hesitant to jump and purchase at prices that are too high.
The seller has also changed their behavior, and in most cases is reluctant to list because there is not much to buy. I think the Hubbard clause is coming back slowly. If a buyer sees a home on the market for a time, he should feel confident to write an offer subject to the sale of his home. If the home he sells is priced right and he is happy with his home inspection on the potential purchase, then this new listing, amongst a shortage of listings, should sell in a week.
I consider this a perfect market: not too slow and not too fast. Although you may ask why a property was specifically sitting on the market for a time, in most cases it was simply overpriced. Make an offer; don’t be afraid. If the home fits your needs, the inventory is low and we are coming into a snow season, don’t wait. Rates will move around. You can always refinance. Buy for your family. Moving people from an old home to a new home is the specialty of the realtor, and the timing and good vibes on both sides makes for a successful transaction.
Let me close with this. Our area is so desirable, you will always buy with the comfort that resale value is definitely stable. Our central location to travel, New England, Yale and Manhattan makes us affordable and desirable. We are small but mighty in the burbs.
If you need more information on these issues, email Barbara.Lehrer@cbmoves.com.