This picture is worth a thousand words, at least.
Click on the picture to enlarge.
Buyers
Good news. Selection is excellent. Mortgage rates have swooned below 5%, really. Interest rates in the 4% range means your buying power is ferocious. Fewer qualified buyers have sellers competing for your attention. Months Supply Of Inventory has crested the six month mark, spilling into Buyer’s Market territory. As sales accelerate into spring, supply will dip back into buyer and seller balance.
Other news. Sales prices in general have appreciated over the past two years. The Woodlands market is unique and unlike disaster real estate markets you read about or see featured on TV news. While it is taking sellers longer to sell, the average number of days on the market for homes sold in December was in the 70 days range. Sellers are not frantic, desperate or faced with collapsing sales prices, they are competing for qualified buyers.
Sellers
Good news. Thankfully you don’t live in a market with plunging prices. You do live in a market where competition for qualified buyers is fierce and it is taking longer to sell. Thankfully, mortgage rates are at all time lows, more buyers will enter the market place, sales will accelerate into the spring and summer. Homes are selling. Over the past two years, overall sold prices have remained stable with a very slight appreciation.
Other news. If you don’t really want or need to sell, save yourself time and hassle. Don’t test the market. Homes are taking longer to sell. With over a six month supply of inventory, it’s an offical buyer’s market.
Things effecting your success are marketing and merchandising.
Make sure you have fabulous pictures posted on the Internet (agent controlled/seller input).
Make sure your home shows better, cleaner, sharper and crisper than your competition (seller controlled/agent input).
Make sure your price is competitive (seller controlled/agent input).
Buyers are watching the news, they mistake The Woodlands market for California, Arizona and Florida markets. When a buyer low-balls you, don’t freak and get angry, respond positively, negotiate earnestly, attempt to remain unemotional and work to lead the buyers up to realistic terms (seller and agent controlled).
Make sure you have massive internet broadcasting and a detailed marketing plan (agent controlled).
Agents
Guess what? What ever you did to create success in 2008, won’t work as well in 2009. You’re going to have to embrace new marketing methods, social media and technology. You’re going to have lead, problem solve, create and communicate at higher heights. You’re going to have to show up early and more often. You’re going to have to over-deliver, follow-up more frequently and follow-through more faithfully. Basically, you’re going to have to perform like a multiple personality super hero.
The good news, fewer and fewer agents will be willing to invest the time, emotion, money, sweat and study necessary to thrive.
In the next day or so, I’ll post detailed information about Average Sold Prices over the past two years and Months Supply of Inventory.
You might also be ineresting in learning which Woodlands broker leads the market in getting properties sold. I’ll post that as well.
Any questions, feel free to call me.
Happy New Year.
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