Thursday, June 07, 2018
Summertime, coming soon, is typically a Great Time to buy and sell. Yeah, I know, I sound like a Real Estate Broker but I have years of trends to back up our higher sales volume during the summer months. Let’s speculate on why that may be.
People like to move when school is out and want to be in their new homes by the time school starts back. For Sellers, you want to be on the market when buyers are looking, and Buyers, you want to be in the market when Sellers are selling. However, nationwide we’re hearing about the housing shortage. This means that there are many more Buyers than there are homes available for them to buy, and they want to buy - now. At today’s sales meeting, I reported that 8 of the 10 markets where we have offices are classified as having an inventory shortage (less than a 6 month supply of homes). The other two are close at 6.7 and 6.8 months. A 6 month supply of homes is considered a balanced market. Equal for Buyers and Sellers as opposed to a Sellers’ Market (less than 6 months) or a Buyers’ Market (more than 6 months).
An anomaly in many markets are the New Home Builders. Although they’re not building as much as they were in the 2005 boom, they are alleviating some of the shortage of housing supply in many of the markets we serve. It appears that they can’t build them fast enough, with most of them speculating and putting homes in the ground in anticipation of future buyers. This is an interesting condition that is actually creating demand for some homeowners to put their homes on the market. As technology and innovation expand, many of these new communities are creating awesome amenity packages. Things like Ultra Wi-Fi communities where residents enjoy Ultra-Fast wireless Wi-Fi to their own networks while in their community. This service is super-fast and is typically way less expensive than your or my current cable bill. Who wouldn’t want to live in a community with a 5.2 acre resort pool with swim-up bars, sailboat, paddleboard and kayak launches? Smart home technology is almost commonplace now in these newer communities as well. Some families, especially the techy ones, are wanting to move into these new neighborhoods, which in many cases creates the need to sell their current home.
One final note: Interest rates are trending up, adding more reasons to buy and sell soon. The combination of rising prices and rising interest rates could end up pricing some people out of the market. Sellers would have fewer buyers able to buy their home, while Buyers would have fewer homes from which to choose. So, while we have no choice but to deal with the current market conditions in the areas where we live, CENTURY 21 Beggins has a vast array of knowledgeable sales associates willing to dive in and help you explore your options and supply you with the vital information to make the right decision for your needs.
As a provider of Life Betterment Solutions, we’re here to help. If you’re even remotely thinking of Moving Up – Moving Down - or Simply Moving Around, please feel free to reach out to us. We’re happy to Empower, Educate and Encourage you to make sound decisions. We’ve got your Back. J
Until next time, may you have fair weather and following seas!
Craig J. Beggins, President
CENTURY 21 Beggins Enterprises