The Weather And Such Things
As of this writing there are a total of 78 single family homes for sale in the city of Lakewood. This is a historically low number. And weather is at historically low temperatures. Some may suggest that these two figures share some cause and effect and they are partially right. After all who wants to get a house ready to sell when it’s below zero outside. Who wants to keep all things pristine and lovely when the daily battle with layer upon layer and where did I leave my gloves and don’t you go tracking snow, mud, and water into my house and it takes five times as long just to get out of the house and where are my GLOVES?
The low inventory has many causes. The most frustrating cause is the low inventory itself. After all, who wants to sell their home when there are not any homes for the seller to buy? It’s scary to be out there without a safe landing place. Better to wait until the market is easier for the buyer. But if this is the case and there are more homes for the buyer to choose from aren’t there more homes to choose from? What I am saying is you as a seller of a home have choices. If you list with a low inventory to compete with then your chances of selling quickly and at a good price increase but so does your chance of ending up homeless if there is no home for you to buy.
On the other hand, if you list when there are more homes on the market there is more competition and your market time may increase and the selling price may decrease. So what to do?
Some who would like to sell cannot due to financial reasons. Their mortgage may be too high for the market to bear. They may have just added a new kitchen, or bath, and have too much invested with limited returns. Others have weather related issues. The exterior needs painting or projects need finishing and this can only happen when it is warmer. All these and more are contributing to the low inventory.
Buyers are also facing dilemmas. Low inventory means far less choices and tight sales prices. They have to act quickly and be prepared. Often they will be in multiple offer situations. These are factors to consider. However there are reasons to buy right now.
The cost of your mortgage is at very low historical prices. If the rates start creeping up the buyers purchasing power starts to shrink. For every half point interest rates rise buying power shrinks by $10,000. Prices are still at a value compared to previous levels. If you are both selling and buying, waiting to sell at a higher market price may be a thought. However the home you are purchasing will have also risen in price, effectively negating any gain you had.
So what to do? The first step is to gather information about the current state of the real estate market. You can do this Thursday March 19th at Around the Corner 18616 Detroit Ave. From 7 to 8 p.m. Real Estate Agents from Berkshire Hathaway Home Services/Lucien Realty will be on hand to spread the news about the current real estate market. Go to thestateofrealestate2015.com for information.
I am a Realtor working with Berkshire Hathaway Home Services/ Lucien Realty. My wife Cindy and I have lived in Lakewood since 2004. A former hige end Pastry Chef and College Teacher, I have lived many lives. Both Cindy and I are involved with Lakewood Alive, Live Well Lakewood , The Lakewood Historical Society and The Lakewood Chasmber of Commerce. We live on Waterbury road with two cats and you can usually find us sitting on our front poarch come evening.