Prices are Up, Inventory is Down and Mortgage Rates are Up. What does that Mean?

The crazy real estate ride continues.
So what does it all mean?

 

Stats-Graphic---March-2018

Here in Pinellas County, Prices are up as a direct result of inventory being down. It’s a simple issue of supply and demand. Where it gets interesting is how the increase in mortgage rates figures into the equation.

What the market is showing us is that the availability of homes is continuing to decrease at double digit rates and as a result the prices are going up at a similar rate. When interest rates go up, the purchase price people can get approved for goes down.

There’s no shortage of speculation and the truth is that no one knows for sure what the future holds. The best we can do is take a look at past patterns and known cause and effect. In my opinion everything is cyclical and if we look at the numbers this is a perfect time to sell.

If I’m a Seller, I’m set. Right?

If you’re a seller and your house is in a good location, in good condition and priced right it will sell in a short amount of time. Our average days to contract is 13 days right now! That always leaves the question “could I have gotten more?” Because the market is so hot, many people skip the advertising and marketing and rely solely on the MLS and signs to save money. If that’s the case, yes, you could have gotten more. We use the same advertising and marketing strategies in a seller’s market as we do in a buyer’s market so we can get the largest pool of possible buyers as quickly as possible. That way, the best price can be obtained and still sell quickly. The way we see it, if we’re not doing everything possible to sell the property at the maximum price and as quickly as possible, we’re not serving our client fully.

One thing that won’t happen is to get way more than the property is worth. The stories you hear about people getting way more than their property is worth are very few and far between. There are two reasons, banks won’t loan on overpriced property and people with cash almost always know better than to overpay.

So, what if I’m a buyer?

If you’re looking for your next home, you’ll need two things to be successful; speed and information. By the time the listings get to the consumer real estate web sites it’s too late. Pat and I have access to information before it becomes public and in many cases, because of our vast network, before it becomes available to other Agents. We also have a number of ethical and clever ways of getting your offer accepted even if it isn’t the highest offer or the one with the best terms. It’s all a matter of research and expert negotiation. In fact, Pat and I are among the few Realtors who have earned the certification of Certified Real Estate Negotiation Expert.

Let’s chat about it! Call, text or email any time. Pat and I love to help and make new friends. I can be reached at 727.743.1740 or Chuck@VosburghandVosburgh.com, Pat can be reached at 813.220.4898 or Pat@VosburghandVosburgh.com.