No one has a crystal ball but we can see trends developing.
In the news this week:
What does this mean for you?
The increase in pending sales and purchase mortgage applications is a good leading indicator that the real estate market will improve, at least for the near term. This is also a good reason why both buyers and sellers should consider entering the market now.
As more jobs are added and unemployment declines, we could expect more buyers entering the real estate market. This means more attendance at your open houses and more calls on your ads. It might be a good idea to get ready to answer questions buyers might ask, such as school districts, proximity to employment, shopping, transportation and local tax rates.
Mortgage rates remain low meaning mortgage payments will be lower, compared to where they have been. The bad news is that qualifying for a mortgage today is far more difficult than it was 5 years ago. You may want to encourage your borrowers to get prequalified before looking for homes.
Fewer listings in Orange County means that real estate agents will have to stay on top of the inventory. A good listing could evaporate before an agent gets a chance to show it to a buyer.
Price gains could be both good and bad news. The bad news, of course, means that buyers will quickly be priced out of the market if they don't act quickly. The good news is that as prices rise, we can expect more properties to enter the market, hopefully alleviating the stress of a shortage of listings.
The increase in the number of Tract Reports being viewed at The Inside Tracts means, of course, that more real estate professionals are looking up tract information. We know from our experience, that many real estate agents put off their research until the last possible minute. Consequently, these agents will be less prepared to answer buyer or seller questions. Losing this competitive edge may mean losing a deal to a better prepared agent.
Be prepared. Know your rates, know your inventory, know your tracts, know your models and know your floor plans. Happy Selling!