Good morning, I'm Gary Edelbrock. We've had a lot of news in the real estate world, and thought we'd check in with Lee Amble about what's happening right now.
Fall Real Estate Outlook – Hot Or Not!
By Lee Amble, Realtor/Consultant
First and foremost, I want to thank my past readers for reading my articles; you all give me energy to keep on! Also, I would like to thank Gary Edelbrock and Lynne LaMaster, editor of Prescott Enews, for giving me this opportunity, in an attempt to help and challenge readers. Finally, thanks to my wife Jan for editing, correcting my horrible spelling, and typing up these articles. As you all know I am a futurist, not a speller.
Special thanks also to realtors, appraisers, lenders, underwriters, home inspectors, home buyers and sellers, etc. that provide information that help me create these articles. These are my ideas after having spent 37 years in the real estate industry, but you’ll have to make your own judgment about what’s right for you.
Here’s my Fall Outlook:
INTEREST RATES will continue to be very low for the near future, possibly for 12 – 18 months, but sooner or later will go back up to the 5% - 8% range. In my estimation, if you really want to be smart about rates, they’re great now! How smart would you look if you took out a 15-30 year loan at 3.5% if that rate doubles in a few years? In my real estate career, we have worked with rates as high as 22% but most years were in the 6% - 9% range.
Seasonal Selling Habits In Our Area:
Although we now have a 12-month selling season, the best months for closings are usually May through October. The reason is very simple; as we have many tourists, family visitors, families wanting to move before school starts and, of course, did I mention the heat of Phoenix? Our weather is near perfect compared to many locations.
I have said throughout my career that homeowners should sell between May and October and buy between December and March.
3. Supply And Demand:
This has always been the main factor in price fluctuation. There is normally a larger supply of homes for sale November through March, which makes that the best time for buyers to negotiate selling price, terms, etc. As a seller, if you can work it out, it’s to your advantage to put your home on the market for the spring market. As usual, buyers always set the final selling price, as they’re the ones with the money. Remember, the sellers set the asking price. Many sellers won’t agree with my opinion, but my thoughts on getting the highest selling price are to price very fairly or even too low and hope for a bidding war.
Over-pricing a property is the worst thing a seller can do and the second worst strategy would be to offer your real estate agent a lower-than-normal fee for their services. When you do this you will get fewer showings. Remember, the seller who offers the higher fees will reap the benefit by having more showings. Fees are negotiable, but you have to make your own choice. Higher agent fees normally net a higher selling prices and less selling time.
4. Market Outlook For The Future:
We will stay in this buyer’s market cycle for quite some time with prices going up at a more gradual pace than during the past six months. Statewide, prices have gone up about 16% with some areas increasing much more quickly than others. The prices of lower-priced homes have gone up at a much faster rate, with higher-priced homes increasing much more slowly.
Interest rates are at an all-time low!
Good, sellable inventory is still very short and in high demand (this should improve over the winter).
The job outlook is better than in the past.
Positive perception is at the highest level I’ve seen in the past few years and, as I’ve said before, perception becomes our new reality!
Whether buying or selling, we’re just trading dollars but at a great interest rate that won’t last forever! As I see it, this is a great time to either upsize or downsize but remember, if you missed the home you wanted to buy, there will be another one you love so don’t get caught up in thinking you must act on the first one you like! Take time to be truly comfortable with your decision.
Many thanks for reading my “Food for Thought,” article. If you have questions or ideas for future articles, please call or email me. And remember:
Selling A Home Is Easy But Doing It Right Is The Key!
Lee Amble, Realtor/Consultant
National Realty of Prescott
Lee’s Cell: (928) 533-4455
Jan’s Cell: (928) 533-4488