Here we are near the end of another active year in real estate. I am excited to report this month that the market is continuing to send us the positive signals that we have all been waiting for. This will be the last report for the year so I will give you a recap of 2012 as well as a few thoughts for moving into 2013.
= The number of closed transactions increased as much as 15%.
- Condo prices experienced a slight increase due to less inventory available.
- Home prices experienced an increase due to shrinking inventory.
- The average time it takes to sell a property declined.
- The List to Sell price ratio is shrinking meaning that sellers are having to negotiate less in
order to make the sale.
- The number of showings per active listng is increasing.
Moving into 2013, we know that many property owners like yourself will be looking for ways to sell their real estate investments without taking too big a beating. As your Realtor, each of us understands our role and right now it is to do our best to protect your equity or in some cases, minimize your losses.
We have found that there are still properties that are selling for prices well below where they should. Research shows that this typically happens when a property is listed and no other marketing efforts were put into motion. Not only do the properties sell for less, but they take longer to sell, which just adds to your losses due to the ongoing expenses.
In 2013, the difference between selling at a fair price versus selling at a low price will be marketing. You and I cannot control the market, however, we can control the way a property is represented to the market.
Notice above how the shrinking inventory is the main cause of an improving market. We anticipate the inventory being very low until mid spring. It is very common to see shrinking inventory during the winter months and then a huge surge in homes for sale once the season begins. This occurs each year because some people think there are no buyers in the market during the winter. Therefore they wait to list around Easter. This is why the market gets flooded with inventory in the spring. By the way, banks often do the same thing with their foreclosures. The fact is that properties will be selling all year long and in many cases we will get a higher price in the winter than we will in the summer due to the lack of competition.
We also want to say a special "Thank You" for all of the support you have giving us this year. As a company, we have sold and closed over 1000 properties in 2012. No other company has closed over 600 which shows how active we are in the local market. We could have never reached these levels without you and your referrals.
We will continue to be your resource for real estate information. You do not have to be an active buyer or seller for us to be of service to you. If you need bank recommendations, attorney referrals, or any other bit of information then please call or email us anytime throughout the year.
Greg Harrelson & The Harrelson Group