January 19, 2012
Dear Friends and Clients.
The numbers are in for December 2012. Home sales and statistics for the end of the year 2012 are in. The year ended with some optimism and hope!
A declining market means that the inventory of homes for sale is growing while the number of sales every month is declining. When the number of homes going on the market every month is bigger than the number of homes selling every month that means the market is in decline. This started in some parts of the USA in 2006. The areas that were the “Hottest” like Florida and California peaked and started to decline, while here in CNY it started later in 2007. Month to month market prices and volume have been going on a downward spiral since then. By understanding this and collecting the stats month after month I monitor this information. It is part of my service and knowledge to know this. It really picked up or went down more drastically after October 2008. The economic meltdown really enhanced the decline here in CNY. You started seeing Real Estate offices close and agents leave the business.
This means the value of homes is literally going backwards in time. 2007 -- 2006 – 2005 – many experts in Syracuse say we’re back to 2000 or 2002 prices in 2011!!! That’s what’s been happening here to prices when a home sells. (But not the Taxes) It’s normal to see a home assessed for $145,000 and to sell for $99,000. That’s what’s been happening.
However, the good news is…three months in 2011 saw the numbers turn. December was one of those months!
In December 2011 more properties sold than went for sale! In CNY
968 sold in December and 848 went on the market. This was an improvement. The year ended with -4% Listings entered and a +4% Sold. The market improved a smidgen in 2011.
At the end of the year 2011 in CNY MLS system 8476 properties sold! In the area I cover 6400 sold. So homes are selling.
Does this mean sellers are getting the price they want or should they wait? Not really. The Buyers are still in control of prices; they bargain hunt and pick the best possible deal they can get. You see homes that sold in 2011 the buyers saw as bargains. If your home was on the market and did not sell it’s because the buyers did not see it as a bargain. How do you get your home sold in 2012? Make it a bargain in the eyes of a buyer. If you were a buyer wouldn’t you want a bargain?
Waiting is not an option, no one knows what’s next.. If we are at the bottom this could be the new normal. It also takes an equal amount of time to go up. If it took 6 years of decline to get here it could take 6 years to go back up to 2006-7 prices. Adjusting your price now is the way to get it sold that preserves your equity.
My goal was to help you gain some valuable information about pricing and how to get your home sold in this market and “Preserve your Equity.”
“My job is to preserve your equity.” 315-264-3082.When an acquaintance has questions or needs help with real estate “Call me immediately”