The June 2012 existing home sales were released by the National Association of Realtors this week and the biggest news is that the real estate rebound is beginning to shrink inventory levels and prices are rising. As a Realtor on the front lines I have experienced the market change first hand. In the last 4 months I have written 5 contracts in which my buyers were in multiple bid situations. In each case the “final and best” offer I presented was extremely close to, or at list price.
But today- I knew things were moving even faster because I presented an offer above list price with highly favorable terms for the seller, and it still wasn’t enough. My buyers were outbid and they are incredibly disappointed.
The frustration for me is that what is happening in my market area of Chatham, Madison, Maplewood, South Orange, Millburn, Short Hills, and Summit New Jersey does not necessarily coincide with what is happening on a national level. Because they have been reading and listening to the media report nothing but bad news about the residential market for the last 4 years, most buyers still believe they are in teh driver’s seat for determining price. In reality, the recovery in our area started June 2011 and has been steadily improving month over month. As with most booms and busts, most people aren’t aware of the market changes until these cycles are in place for an extended period of time. The buyers who are out in the market now will be envied by the buyers who wait and will be shut out of the cheapest housing prices in over a decade and historically low interest rates that make affordable housing that much MORE affordable.