It has been 6 Years Since the Last Seller’s Market. In that time buyers have had all the control and were able to secure incredible “deals.” But, now that the housing market is bouncing back in New Jersey (see below trends analysis), it is frustrating buyers to no end.
The truth is, there are still “deals” to be had since prices are just beginning to climb and the mortgage rates are still insanely low. However, recognizing a good “deal” and managing the transaction takes more time, more patience and better market research to secure it.
6 Years Since the Last Seller’s Market
Some overly optimistic sellers are thinking they can price their home equivalent to the last seller’s market 6 years ago, but fortunately most are listening to their sales agent’s advice, setting fair prices and allowing buyers to drive prices up organically with multiple bids. If it is a good house, in a good location, nicely updated –rest assured there will be multiple offers. Knowing that before making an offer and having a strategy in place for navigating the process will be key to a buyer’s success now that the market has changed back.
So how does a seller’s market look exactly? It looks pretty much like this:
According to the Otteau Valuation Group– a leading real estate research firm, home purchase activity in March increased for the 18th consecutive month in a row with a record 7% increase year over year. And, this growth is even more impressive when you consider that March 2012’s purchase activity was 20% higher than March 2011. When there is growth on top of growth, that’s a true sign of a housing market bouncing back. Also see the previous month’s analysis.
What does this mean for you? If you are contemplating selling your home – it’s the best time in 6 years. But remember, prices are not the same as they were 6 years ago. Alternatively if you are in the market to buy a home be prepared for participating in multiple offer scenarios and homes selling over their list price, but that does not mean they aren’t still a good “deal.”