Going from "For Sale" to "Sold" in Today's Market
With today’s (4/17/2012) release of the CAAR 2012 1st Quarter Market Report, what does it all mean for you? Take some time and explore the report. A few items stood out for me:
1. The inventory of Central Virginia homes for sale remains high and the buyers market (more homes for sale than buyers) continues. With over a 12 month supply of homes for sale, pricing homes correctly, when initially placing them on the for sale market, continues to be key in getting the homes sold in a timely manner.
2. 2012 Q1 sales outpaced Q1 sales in 2011 with the median sales price declining when making the same comparison. Homes are selling but pricing is down a wee bit.
3. Short Sales (selling for less than owed w/ mortgage holder participating & approving sale) and Foreclosures ( Lender/Bank Owned) continue to play a role in our market. About 20% or 1 in 5 sales in 2012 fit the Short Sale or Foreclosure which remains less than many other parts of the country.
Buying or Selling? Sold is the Goal!
What’s leading to the increased Central Virginia sales in the 1st Quarter of 2012? From personal experience and interviewing active REALTORS in the area, we see First Time Home Buyers getting off the fence moving from renters to home ownership. Historically low home mortgage rates, home prices adjusting down during our market correction, and high residential rent payments make buying now a better option than renting for many in our buyer’s market. As these First Time Home Buyers purchase homes these transactions allow the sellers to then go out and purchase a replacement properties with homes sales rippling out through the market. We also see buyers coming into our market from other parts of the country now that their homes outside Central Virginia have finally sold.
Overall, our local real estate market continues to improve. We’re still influenced declining values from short sales and foreclosures. For many renters the 2012 market presents great opportunities to purchase with mortgage payments less than rent. But, the important thing remains, what does this mean to your real estate holdings and/or your buying opportunities? Real estate remains local (by street, neighborhood, locality). If you want to discuss real estate you own or the potential for buying a home, farm or land, I am here to help, so let’s talk!
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