Thoughts on Our Real Estate Market at the Halfway Mark in 2017
It seems incredible, but we are just about at the halfway mark in 2017.
It’s therefore a good moment to take stock and consider what we've learned about the local real estate market so far this year and where we're headed.
The over-riding thought in my mind, for most market sectors, is that there's rarely, if ever, been a better time to sell and, at the same time, there are fantastic opportunities for buyers.
We've seen the continuance of a seller's market throughout the year. The key reasons behind that are very strong buyer demand and a long term trend of a shortage of available properties for sale.
Given such a strong demand for homes, it's perhaps surprising that more sellers haven't recognized the opportunity. There are a range of reasons why shortages have occurred, among them the fact that a lot of people are already locked in to low rate mortgages on their existing properties, many having refinanced their home loans, and it's also likely that moving plans that were put on hold during the recession years have never been revisited, with many homeowners continuing to invest in and improve their current residence.
We've recently seen more properties being sold in some areas of the market, on a month-to-month comparison, but the underlying long term trend is that the overall supply level is continuing to fall. This inevitably benefits sellers, encouraging very competitive multiple bids for the best properties, often resulting in the asking price being exceeded.
If you've been on the fence about whether or not to sell this year, I go back to my initial thoughts and say to you that the balance of benefits right now across most market sectors is such that it's hard to think when there was a better likelihood of selling for a better return and in a quicker timeframe.
And while it may be a seller's market overall, what makes our current market conditions so amazing is that there's also so many great reasons for buyers to act fast.
Clearly, a key driver behind the tremendous buyer sentiment out there right now is the return of very low mortgage interest rates. Rates fell last week to the lowest levels seen since before last November's election.
Political and international uncertainties are once again contributing to investor nerves, sparking a return in the popularity of bonds, leading to lower cost home loan borrowing.
Even though exceptional buyer enthusiasm was not greatly affected by the rises we saw in mortgage rates, it's significant to note that, now they're once more in retreat, mortgage applications jumped by over 7% last week alone, as buyers rushed to lock in rates.
So, even though we've had a very robust market in the first six months, we're now back to the pre-election scenario of rates moving south, resulting in an even greater sense of purchasing urgency.
As ever, no one has an accurate crystal ball to foretell exactly how things will play out, and there's always room for sudden change. But right now, there's just overwhelming evidence that buyers and sellers goals are pretty closely matched.
It really is a perfect storm!
Why not contact us today to discuss your best selling and/or buying options and discover the differences in how we work at The Nicoli Group to achieve the very best outcome and return for all our clients.