Looking to buy or sell in 2012? This might interest you.
It seems that everyone has an opinion about the real estate market. It is not unusual for me to get peppered at social gatherings with questions and opinions about housing trends as well as glass ball forecasting. You see, I live and breath this stuff. Every day, I make sure that I am not only dissecting past market factors, I also dive deep into preceding sales factors – what will the market do 3 months, 6 months or a year from now. For example, Builders rely upon Debbie’s and my expert advice to help them assess the upcoming housing market: absorption rates, pricing details, option pricing and important home features. We pour over market reports, sales figures, employment rates, commercial real estate trends as well as perform shopping surveys to help builders position their products to the market. However; there is one very important factor that is not found on the Wall Street business section or local papers. That’s the “gut” feeling many of us use to make important decisions in life.
Our daily interaction with consumers provides us with a unique perspective in the current real estate market. Your opinion might be formulated by talking to one or two people that have or will enter the real estate arena. Our perspective is acquired by speaking to several per day. As I meet consumers looking to buy and sell homes, I am able to read into their socioeconomic state of mind. In the past 20+ years of practicing real estate (am I really practicing?), these past 7 years have been very Sybil Doresett-like, carry multiple personalities. It made consumers wonder what the heck was going to happen next. What used to oscillate on a seasonal basis, markets were changing month to month and week to week. The housing boom in early 2000s defied all practical housing economic logic with massive price increases, and remarkably low supplies. Flash forward to today’s current market and very recent past: Interest rates at historic lows. Home prices falling. All this in making a great “housing soup”, makes one wonder: Why aren’t more buyers taking advantage of the feast before them? In my humble opinion, the consumer was like the little kid in The Incredibles when he was asked what he was waiting for. His response: “I don’t know? Something amazing I guess.” I have noticed over the past several weeks, the Buyer is getting a bit restless. I believe they are getting tired of waiting for something amazing to happen economically. I asked Debbie for her opinion and she remarked that the consumers’ pressure on the political structure is starting to bear fruit. The Tea Party movement as well as Occupy Wall Street is starting to get the attention of those that need to take action to make things happen.
What Is Goin On?
It is my gut that something amazing will happen this year, albeit; locally and not to the proportions that some would like to see. With the help of informative Realtors, I believe that many Buyers are recognizing that Sellers (the “have to” sellers that is) have hit rock bottom and they can’t move lower on their prices. Buyers are also noticing that builders have pretty much exhausted the high priced lot inventories by getting aggressive with pricing and giveaways. Now New Home prices are creeping up a bit due to increased sales and lower inventories.
Foreclosures will still rise, but I see savy consumers taking advantage of distressed and other competitively priced homes even more. However; many buyers will be taking advantage of low priced non-distressed properties as opposed to purchasing run-down foreclosures or gamble on the short sale. Banks are recognizing this and are getting better fixing up the “AS IS” home with improvements making the house a bit more appealing.
Just released in late December, here is the 2012 Economic and Housing Outlook from NAR Chief Economist Lawrence Yun. It details the economic indicators such as existing home sales, new home sales, housing starts, GDP, payroll jobs and more and for 2012.
2012 wil be a great year.
Let me know your thoughts.
About Chris & Debbie Weymouth, The Weymouth Group, LLC: Your number one source for Maryland Real Estate Blogs, News, Videos, and more! Chris Weymouth, Your Luxury Home Realtor.
Chris Weymouth, Director, Certified Luxury Home Marketing Specialist, CLHMS and Debbie Luber Weymouth, Manager, have marketed and sold over 4000 homes in Maryland since 1983. Expertly trained and award winning agents, they are leaders for The Weymouth Group at Keller Williams that has been recognized by their peers as one of the best in the business. Chris Weymouth is ranked in the top 1% at Keller Williams Select Realtors, top 1% in Howard County and Maryland among Realtors. Serving Central Maryland and all our friends and family for almost 60 years. Need a Luxury Home Marketing and Buyer Specialist in Howard County (Ellicott City, Woodstock, Clarksville, Marriottsville, Fulton, Laurel, West Friendship, Glenelg, Columbia, Elkridge, Dayton, Mt. Airy, Woodbine and more), Carroll County (Elkridge & Sykesville), Baltimore County (Catonsville, Woodstock, Owings Mills, Pikesville and Reisterstown), Anne Arundel County (Pasadena, Severna Park, Hanover, Severn, Glen Burnie, Annapolis and Odenton), Prince Georges County (Bowie & Laurel), Montgomery County (Silver Spring, Olney, Bethesda and Sandy Spring) or Harford County? We Know This Market! Then call Chris at 443-280-1922 or email firstname.lastname@example.org