Advice for spring home buyers can be found in this recently released survey from realtor.com® , a leading online real estate destination. Research highlights the reality of today’s home buying markets around the country. Advice and insights into one of the most competitive home buying markets in years can help buyers and let sellers know what to expect. Chief Economist at realtor.com Danielle Hale tells the story behind the numbers.
This year there is even less inventory than last year. According to our February 2018 data inventory is down 8.5% from last February. Days on Market (DOM) fell to 85 nationally from 90 last year.
The big news that impacts buyers according to Hale, inventory has declined for 42 consecutive months. What’s most interesting and what the research showed is buyers are getting the message that it is a tougher market this Spring. Either they have heard, or they have experienced it personally as they made offers and did not get the property, Hale adds.
Listen to Hale’s advice for buyers. You have to know exactly what your comfort zone is and the maximum price you can pay. It’s very important to be thinking about what you can afford as mortgage rates go higher especially if they move up quickly.
Take a look at the research from Toluna who in early March surveyed more than 1,000 active buyers. Clearly buyers are out there armed with as much market knowledge as possible. Many are more determined than before to strike a deal.
Here’s key research from the survey. The message is buyers are serious this Spring with 40 percent of buyers planning to put more than 20 percent down in hopes of getting ahead of the competition. Almost half (40%) of today’s buyers have been actively looking for a home for more than seven months. Many remain hopeful with 60 percent thinking they will close on a home within the next six months. Strategies to nab that dream home include checking listing websites daily, while 40 percent of buyers plan to put more than 20 percent cash down. More than a third are setting price alerts on properties. More than 25 percent will offer above asking price with 31 percent planning to put a larger earnest money deposit down. Only 6 percent indicated they are not planning to use any tactics to cope with competition.
Boston’s David Bates, a long-time Broker Associate at William Ravis Real Estate sums it up.
“We have had a lot of strong markets, but this probably is the strongest I have seen. In my office, folks are talking about the significant competition for modestly priced properties outside the city, say around $500,000 or less. Someone had a 28-offer situation in Chelmsford, another had a 17-offer situation in Everett. I myself had a nine offer and six offer situations in Beverly. These are not the most sought-after communities in Greater Boston. Perhaps there are a number of things motivating buyers, but high on the list is the lack of affordability in and close to the city.”
If you plan on house hunting this Spring, good luck. If you plan to sell this Spring, chances are your home will sell quickly and possibly for above asking price if it’s priced right, in excellent condition and has location, location, location going for it.
Source: forbes.com ~ By: Ellen Paris, Contributor