As of September 30th, all 4 of the key objective real estate indicators are predicting higher prices for Fair Haven homes. More homes sold this year than last year, indicating higher demand (and higher demand tends to increase prices). Fewer homes are on the market, indicating lower supply (and lower supply also tends to increase prices. Addressing both supply and demand, the real estate absorption rate dropped from 4.2 to 3.8, indicating a stronger Seller’s Market than we had a year ago. Finally, the median home price increased 5%, which is a lower percentage than we saw at the end of the first and second quarters. Here are the statistics; good news for buyers would have been highlighted below in underlined italic font but unfortunately this month the statistics don’t show any good news for buyers:
Fair Haven Single-Family Home Sales, January 1 – September 30
2014 2015 Comment
Sales 73 104 43% more homes sold.
Listings/Month* 36 35 3% fewer homes on market.
Months Supply* 4.2 3.8 Stronger demand vs. supply.
Median Sale $699,000 $735,000 5% higher median sales price.
*based on the previous 12 months of listings
As the weather gets colder, fewer homes will be on the market and fewer buyers will be looking. The age of the inventory (the days the house has been on the market) rises in the winter, and this can be a benefit to home buyers because sellers are more willing to negotiate with buyers who bid less than the listed price. So in the winter both buyers and sellers tend to be more motivated than at other times of the year.
If you’re looking to buy a home in Fair Haven, you’re probably going to have to pay more than you would have a year ago. However, if you keep searching Realtor.com, Zillow, etc. through the winter for Fair Haven homes you may find some real opportunities. Just remember: DON’T CALL THE LISTING AGENT (even if it’s me). The Listing Agent works for the Seller, and has a fiduciary responsibility to negotiate the highest selling price. Someone who represents you as a Buyer’s Agent has a fiduciary responsibility to (among other things) negotiate the lowest price.
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