Thursday, November 29, 2012

How's the Market?

Probably the most common question I get is, "So, how's the real estate market these days?" Many people ask because they are curious in regards to their own situation. They may be cautiously optimistic that things are looking up a bit and their real estate investment is perhaps improving. Well, I have good news. In our particular area (most of Rutherford County and southern Davidson), the market has, at the very least, stabilized. Prices have stopped plummeting, inventory is drying up and sellers are not nearly as vulnerable as they were 2 years ago. There are still pockets where the recovery hasn't really started but almost everywhere has at least leveled off.

To make matters better, some sub-markets are actually starting to recover quite nicely. For example, the traditional "first time buyer house", if in good shape and priced correctly, will sell very quickly. The best part is that "priced correctly" does not mean that it is deeply discounted. This sub-market has made somewhat of an improvement and resurgence in the last 10 months to 1 year. The best part for these sellers is that their most likely target to purchase is still somewhat on sale and interest rates are still spectacular.

So, for example, let's say you have a 1300 square foot house in Westfork in Smyrna and it is in pretty good shape. You can probably get around $100/square foot (or maybe even a little more) and sell it in 2-3 months TOPS. I've sold 4 in that neighborhood this year in less than 10 days each. The average family in that neighborhood is looking to move up to a home in the $175k-$250k range. That price range in the Smyrna/North Murfreesboro area is still fairly ripe with inventory and still somewhat on sale. So, the seller in Westfork can get a great deal on a move up home and basically "win" on the sale and the purchase side!

Obviously this is all hypothetical and your situation is always unique but the point is, most first time sellers/first time move up buyers are in a really good position right now if they look at the big picture.

Does this mean that folks in the $175k-$250k range should not sell? NO WAY! There is more inventory in this range than the lower range, for sure. The thing is, there is a lot of diverse inventory--short sales, foreclosures, "As-Is" traditional sales, estate sales, etc. A normal, no weird stipulation, great condition home in this range, price correctly, will still sell. It may not sell in 10 days, but it definitely will sell. The log jam has been broken free (a little) and the water is starting to flow.

If you are curious about your situation and just want a snapshot of the market, as it pertains to YOU, give me a call. Information is always free. If you want to sell or buy but are unsure of the steps, give me a call. If you are currently working with another Realtor and don't like the service you are getting, definitely give me a call. I know you will be pleasantly surprised. 615-668-2353

1 comment:

Daniel said...

Good points, my friend! Common sense is a rare thing these days and I'm glad you share it and in such a relate-able, understandable way.

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