It is that time of the year where the birds are singing, the leaves start budding, the grass gets greener and the real estate market takes off. We keep hearing that Spring is the start of the real estate season, but what does it mean to you as a buyer or seller?
Granted, everyone's situation is different. Some people need to sell out of necessity and don't have an option. I think of all my peers that were recently laid off from Target and are at an exciting but stressful crossing of finding new employment. Some will make the decision to move out of state leaving them with the decision to rent or sell their current home. On the other hand, some families are growing and are blessed with an addition of a child, but that 2 bedroom condo won't cut it anymore.
Regardless of the reason you are getting into the Real Estate market, here are some facts that you can take with you as you search for a new home or look to sell your current home.
#1. New Listings versus Actual Home Sales
Since December we have seen an increase of new listings in the Twin Cities by 3,000 homes:
However, Home Sales are only up by 238 homes since January and down 873 homes from December:
Granted it is still very early in the 2015 Real Estate Season and the number of home sales is bound to take off, this still leads me to believe this year continues to be a buyers market. In my personal experience in the past year, my buyers have had plenty of homes to look at and were able to use that as leverage in the negotiations.
#2. Sellers are getting more for their homes when they do sell.
The median sales price is climbing back up from the winter off season from $195,000 (Jan) to over $200,000 (Feb). Even compared to this time last year the median sales price is up $17,000:
Although it is a buyer's market, this does not mean a seller won't be able to sell their home at the right value. I anticipate we will make our way back up to last summer's median of $219,000 or more. However, knowing it is a buyer's market, there is more competition as a seller and your home will need to stand out from the rest of the homes for sell in your area. The best way to ensure you stay competitive is to price the home appropriately, keep the home well maintained and keep the house clean.
#3. Closed Sales Over the Last 3 Years
All of that said, history has a tendency to repeat itself. Over the last 3 years we have seen the same trend of closed sales increase starting in the early Spring into the Summer and drastically drop off in the fall and winter:
Knowing this trend you are able to predict the best time to put your house on the market so it sells closer to the top value.
If you would like to see any of this information specific to your home sale or home search I would be more than happy to help. I can pull up information specific to your house and your neighborhood which will help you stay competitive in today's market. I can also provide tips and tricks to increase the value of your house with a minimum investment to help increase the chance of a quick sale.