A frequent question Realtors receive from buyers is, “How many days has the property been on the market?” Knowing this information may give some insight into the motivation of the seller. In some areas it is common for the house that is on the market a long time to have an anxious seller. That is sometimes the case in this resort market as well.
In the past the number of days on the market has not always been 100% accurate. If a property was withdrawn from the market for just 31 days then it could be re-listed by the same broker and the days on the market count would reset to zero. Also, it was common for just a slight change in the listing information to cause the days on the market to reset.
As of February of 2010, the local MLS has a new field called Cumulative Days on the Market. There is a program within this field that searches numerous property identifying fields in the MLS to make sure the property was not listed in the last 90 days by any local Realtor. If it was listed then the Cumulative Days on the Market will not reset. Of course the accuracy still depends upon the data inputted by the listing agency but this new feature should increase the accuracy of the days on the market information available to both Realtors and buyers.
A buyer should also look at the property history of a listing. Since about 2003 the local MLS has kept the sales history data. It will include price reductions, how many times the house has been listed and when other information has been added to the listing. The property history can give you much more insight into what the seller is thinking. For example if the property has been listed a year with no price reductions then, it is likely they are less negotiable than the seller who has had four price reductions in the last few months.
Good information is the key to good decision making. It pays big dividends to find a Realtor who can provide you with the Cumulative Days on the Market information as well as many other types of information necessary to make a wise buying decision.
Saturday, February 13, 2010
Thursday, February 4, 2010
Will this be the year?
One of the cover stories in the December issue of Money Magazine is “Real Estate: Why it’s the year to buy”. This article caught the attention of many people because it’s been a while since the press has favored purchasing real estate. This article looks at that story from an Outer Banks perspective.
It states inventories are shrinking. Factoring in the seasonality of this market, the number of properties for sale in the Outer Banks MLS has decreased every year since 2006. Choices here are less than they used to be but there are still plenty of great values to choose from.
The article states even if properties depreciate in 2010 that the majority of the depreciation has already occurred. Sales of real estate in the last quarter of 2009 suggest that prices are getting down to the point where buyers feel comfortable purchasing. Vacation rental homes have dropped in value to where the numbers now make sense for many buyers. As a result we saw more sales this past fall than in any fall since 2005.
The article mentions interest rates should not get any better and may go up when the Federal Reserve stops buying mortgage backed securities this spring. Rates on the Outer Banks continue to stay around 5%. Just a 1% increase in this interest rate will increase the monthly payment by more than 10%.
It states demand is highest for entry level properties. This is certainly the case on the Outer Banks. Many locals have taken advantage of the first time home buyer tax credit and out of town folks are favoring the lower end properties so they don’t have to count on the rental income to afford it.
Keeping watch for additional signs of the market improving was also mentioned in this article. The author does not want her readers to miss out. Key indicators to watch include an uptick in interest rates and the local absorption rate in the area where you would like to purchase. Your local Realtor will be happy to keep you updated with this information.
It states inventories are shrinking. Factoring in the seasonality of this market, the number of properties for sale in the Outer Banks MLS has decreased every year since 2006. Choices here are less than they used to be but there are still plenty of great values to choose from.
The article states even if properties depreciate in 2010 that the majority of the depreciation has already occurred. Sales of real estate in the last quarter of 2009 suggest that prices are getting down to the point where buyers feel comfortable purchasing. Vacation rental homes have dropped in value to where the numbers now make sense for many buyers. As a result we saw more sales this past fall than in any fall since 2005.
The article mentions interest rates should not get any better and may go up when the Federal Reserve stops buying mortgage backed securities this spring. Rates on the Outer Banks continue to stay around 5%. Just a 1% increase in this interest rate will increase the monthly payment by more than 10%.
It states demand is highest for entry level properties. This is certainly the case on the Outer Banks. Many locals have taken advantage of the first time home buyer tax credit and out of town folks are favoring the lower end properties so they don’t have to count on the rental income to afford it.
Keeping watch for additional signs of the market improving was also mentioned in this article. The author does not want her readers to miss out. Key indicators to watch include an uptick in interest rates and the local absorption rate in the area where you would like to purchase. Your local Realtor will be happy to keep you updated with this information.
Subscribe to:
Posts (Atom)
