Do you like, love, or hate the real estate market?
I love real estate.
Not everyone has this opinion, but everyone has an opinion about real estate. The topic of real estate is a great conversation starter no matter where you are.
Consider this: the American dream is to own a home and buying a home is most likely the biggest purchase that you will make in your life. The real estate market effects our lives in many ways. During the 2016 election, polls showed 73 percent of Americans feel that housing affordability is one of the most important issues facing our nation. So, it’s obviously going to be part of our conversation.
As real estate is a popular topic, let me share with you a question I’m asked each week.
“Is now a good time to sell my home?”
“Maybe?” is often my answer.
Yes, that answer seems ambiguous, until you look at several factors. Are you moving? Do you want down size? Do you need a bigger home? Would you like to live in a different neighborhood? Every person has a different reason as to why they need to buy or sell a home. The worst one is because you have to, and there can be several reasons that you force you to sell, but we will not go into that here.Your reason to sell, move, downsize, or upsize is a personal reason that is being caused by economic or social factors in your life.Good advice here is to make sure you’re sure this is what you need to do. Is your reason to move based on specific needs, or an impulse? Impulse decisions can be very expensive.
So whatever your reason is for moving, the next questions are:
- “What will the real estate market be like this next year?”
- “Is it a good time to sell?”
- “Is it a good time to buy?”
I get asked these questions all the time, and here’s a quick answer. Springtime brings the highest prices of the year. Mid-summer is when there is the best selection of homes to choose from. Late summer and fall is when you start to see prices lowering as homeowners try to seller their home before winter, so you may get the largest discount against their original asking price (they may have overpriced the home, thus the big discount).
Homes are sold during all twelve months of the year; however a significant majority of homes are sold between May through August. The home that is clean and has minimal deferred maintenance typically sells faster than any other home on the market. People do not want to buy a money pit. So, clean your home and make it shines like you’re having a dinner party for your company’s CEO. When buying you want the best looking house on the street, curb appeal is very important. So on to the next question, “What is the Real Estate market going to do in 2017?” That will depend on how people feel about the local economy. We know that the national economy is getting better, but is our local economy going to follow suit? Fear can strangle the local real estate market, by slowing people down in making the decision to purchase. If there are fewer buyers looking then potential sellers may not put their home on the market. The market begins to slow down. People are motivated by fear of loss or hope for gain. Now you see why I earlier answered, “Maybe, it’s a good time to sell or buy your home.” The real estate market is based on everyone’s perception of the future.
So, here’s my forecast: The real estate market will be good as long as you’re buying or selling for the right reason!
Editor’s Note: Eric Bushnell joined Lee Realty in 2014. He brings more than two decades experience in sales and marketing. He currently represents Nolan Homes, LLC, which is currently building custom homes in the Eagle River area.