Note From Realty World -Current Market Energy

Note From Realty World -Current Market Energy

I've been sensing a change in the Real Estate Market lately.  I thought I'd share some thoughts:

Real Estate is VERY local, and some of your buyers/sellers may still be hearing national items or thinking there are lots of distressed properties that say offers should be LOW!!!

I have friends in Northern and Southern California, Vegas, Phoenix, Dallas, Orlando, Detroit, and MORE.  What I hear from them is homes having multiple offers, prices rising, can't get enough inventory.  What your BUYERS may be thinking about making LOW offers is just WRONG in those markets.  In fact, offers are for MORE than asking because of the bidding wars.  Those markets have CHANGED to a Seller's Market.  And new inventory isn't being created as fast because builders can't borrow money to build.

At the same time, appraisers aren't raising the appraisals - yet.  Many of these purchases are CASH investors, and they don't need the bank loan.  As the sales get recorded, the appraisals will rise - but it will be slow to catch up in many areas.

That brings us to Wichita.  Our inventory currently is 300 - 500 homes less than during our strong times (around 4,000 homes or so).  Most of the lack in inventory SEEMS to be New Construction.  Because we have mostly local builders using line of credit to build (unlike the big cities that have Corporation builders like DR Horton), we will continue to have low inventory for some time (in my opinion).  We will also continue to have appraisal problems as the appraisals will be based on comparable from the last 6 months.

For your clients - SELLERS - watch the comparable VERY closely.  Our expertise is more critical NOW than ever before.  Appraisals are VERY tight, and we must become experts at our craft helping sellers price.  BUT - I also think sellers can discriminate more on offers.  Don't over price, but don't move off your price much.  We are slowly becoming a seller's market.  If your seller isn't getting many showings, OR you don't have an offer within the first 30 days or so, REEVALUATE THE PRICE!  You may have missed the mark.

BUYERS - I wouldn't expect low-ball offers to get very far, especially in the early days on the market.  If your buyers believe they've found the ONE AND ONLY home to live in, not worth haggling over a couple of Grand and risk losing the home.

Just my thoughts - I'm thinking if you have out of town folks you show homes to, might be useful info….

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Thank you,

Crystie Macormac

S.R.E.S.-Broker Associate

 Cell Phone: 316-990-5944      

Fax: 634-0089   

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Realty World Alliance LLC.

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