Welcome to a buyers’ market. It has taken at number of months but our area has evolved into a market dominated by the power of the buyer. As a buyer, of course this is great news. As a seller, you may be starting to pace the floor and you may be experiencing a slight sinking feeling. Take a deep breath – it’s almost over.
Now that you've been overwhelmed by the media gloom and doom, let's step back and take a look at where we really are. Good news - it's not so bad after all. There is light at the end of the tunnel.
It is remarkable that everyone knows real estate, equity, has cycles just as any other equity experiences; but, we still seem surprised - even indignant - when the market declines. Yes, there is something a little different about the psychology of real estate - especially when it involves the single family primary residence. Declines are somehow a little more painful here. Still, market ups and downs are the normal, predictable course of things. Expect the market to move up once again ... it will.
If you follow the stock market, you know that the best time to buy is when the market is down because that is when stocks are "on sale". When should you buy homes? Maybe anytime but the best buys are made when the market is down. Still, people love to buy on a rising market whether that is the stock market or the real estate market.
Let me share with you briefly a few positive aspects of the current market. If you are buying a home, you are in an amazingly fortunate (but rare and fleeting) situation. This is a great time to buy – in fact, an incredibly great time to buy! Homes are truly ON SALE! Please, please take advantage of this historic opportunity!!
If you have real estate that you are in no hurry to sell, no problem. Prices will rise again as they always have. If you have to sell, be realistic. It will take longer and you may have to accept less than you would like. If you can wait, it may be a wise move. Try to see the big picture and avoid hitting that panic button.
The situation is driven by nothing more than basic elementary economics. Currently the number of homes that are on the market is poorly balanced against the number of buyers who are in the market. With fewer buyers for available home, every home, in theory at least, will take longer to sell. Today, expect an average of about 90 days on market. If your home is in a newer area competing against ever increasingly aggressive builders, expect it to take even longer.
Sellers: price your home as aggressively as possible when you FIRST list it. Do not list high and slowly reduce your price. It is tempting to try that but you will be missing many of those early shoppers and you may unnecessarily extend the time on market. Plus, you risk having a stale listing that agents avoid showing. The bottom line is that your home is only worth what the buyers will pay TODAY. Tomorrow, it will be different. Be realistic and be patient.
In my opinion, for sellers in the Charleston market, the worst is just about over.
>> For buyers, hurry up -- the big sale will end soon and without notice!
Chris DeLoach, BIC
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