The 4 Current Trends Of Our Market

Dated: 06/08/2013

Views: 11568

If you've been house hunting for a while - this article will be old news to you.  Most buyers looking for a new home are finding themselves scrambling to make offers on time, bid higher than asking price, and still losing their dream home.  Here are Fox News' 4 real estate trends for summer, and what I advise my client to do to overcome these hurdles and win their home!  

You can find the whole article Here: http://www.foxnews.com/leisure/2013/06/06/4-real-estate-trends-for-summer-2013/
1. Low Mortgage Rates: While this is not a hurdle to be overcome - it definitely is making the pool of buyers much larger.  Fox News reports Erin Lantz of Zillow Mortgage saying “Even if the Federal Reserve starts to scale back its stimulus program, the Fed will still help keep rates low for the remainder of the year in order to accelerate the housing market recovery. As the Fed withdraws support and the economy recovers, we expect rates will rise gradually over the next 18 months.”

2. Slim Pickings:  This is the easiest and first one many buyers see, and may be the hardest one to overcome.  In a 'normal' market, there is a 6 month supply of homes.  Meaning if no new homes went on the market it would take all the buyers who are looking 6 months for the market to go completely dry.  The national average is at a 5 month supply, and here in the Portland -Metro area, we are at a dreary 3 month supply.  This simply means... way less to choose from (and more buyers snatching them up when they do come available.  If you have a deadline to be in your new home, keep that needs and wants list flexible.  It is never a good idea to settle when purchasing your new home, but do know from the beginning, you may not get every 'want' on your list, in the right neighborhood, for the price it lists at!
3.  Home Stalking: The routes to finding your new home are no longer.... traditional.  From Zillows "make me move" feature, to buyers going out and door knocking in neighborhoods they like, to realtors pulling lists of properties and sending out mass mailers, for their buyers - when things get this hot, anything goes!!
4. Bidding Wars:  With patience, trust, and a clear mind of what a client feels comfortable paying - bidding wars are really nothing more than a hassle.  As much as buying a home is emotionally taxing, being prepared to lose a house, only offering what you think the house is worth to your family, and then acknowledging that maybe someone loved that house a few dollars more, can ease the pain of multiple offer losses.  Another way to outsmart the bidding wars game, is to not play it!  If you want to pay asking price for a home, look for homes that have been on the market for a couple weeks, or that aren't in the hottest neighborhoods (you'll know, because everything won't say 'pending'). 
Good Luck out there - and remember, if you are buying in the Portland-Vancouver area, you should be working with Front Door Realty!  Call me at 503.789.788 or shoot me an email at melissa@frontdoornw.com
Have a great weekend!  

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