Ensuring a Smooth Spring Sale

Ensuring a Smooth Spring Sale
by Tom Beechler
year of continued high demand and rising home
prices are predicted for the year ahead of us. The
housing market experts making these predictions
do so as they look back on a year of eager buyers and limited
homes on the market. With that in mind, these predictions
do lean towards a trajectory where the housing shortage will
likely continue, but relax at a steady pace. Though buyer
interest is still out there, the low supply of homes on the
market is creating a national rise in home prices. That’s how
we’ve found ourselves in a seller’s market that encourages
people to get their homes on and off the market as fast as
possible. Of course, this doesn’t mean that operating today’s
market is inherently easy. With a rush of activity that always
comes in the spring, here’s what you should keep in mind for
a smooth sale:
ACT FAST, BUT PRICE CAUTIOUSLY.
As a professional who’s been working in this area for many
years, I can definitively say that people will want to lock in a
low rate now. Right now there’s such a large pool of buyers
that even if they do get discouraged and choose to pull out of
the market, it will still be a very active selling season.
When discussing the profit available to sellers in our area
right now, it’s important to keep a level head. Let’s start by
taking a look at our recent performance: January’s average sale
price for the Port Orange area was at $378,279, an impressive
24 percent increase over 2021’s numbers. With cash sales
going up 21 percent from a year ago, and cash sales as a
percentage of closed sales going up 11.8 percent year-overyear,
it looks like profit for the home seller is flowing freely
and with ease. We’re also seeing a fast-paced market; the
median time to contract is only 6 days—down 33 days from
a year ago. Not only that, but the median days on market is
26 days faster year-over-year!
Looking at these figures, I can tell that I will be helping
many buyers find their new home this year. In 2022, I
think we’ll see more inflated properties sitting around on
the market. For that reason, sellers need to enter the market
with realistic expectations; asking for too much on for-sale
properties can actually rob you of the profit you risk gaining.
COMPARISON IS THE TOOL WE USE TO FIND TRUTH.
Sometimes even real estate professionals like myself have
our blinders on when it comes to the market at large. So when
you’re researching and absorbing information about your
local market—its downsides, its advantages, what have you—
it’s more than necessary to weigh that information against
the statistics in other markets. Nationally, we are seeing some
interesting statistics that don’t exactly match our situation in
Port Orange. However, by comparing our market to what’s
expected of the U.S. right now, we can learn more about the
future of our area’s market. Realtor.com Chief Economist
Danielle Hale commented on our market’s future in a news
release:
“Whether the pandemic delayed plans or created new
opportunities to make a move, Americans are poised for a
whirlwind year of home buying in 2022. With more sellers
expected to enter the market as buyer competition remains
fierce, we anticipate strong home sales growth at a more
sustainable pace than in 2021,” Hale said. “Affordability
will increasingly be a challenge as interest rates and prices
rise, but remote work may expand search areas and enable
younger buyers to find their first homes sooner than they
might have otherwise.”
FIND AN AGENT THAT CAN RISE TO ANY CHALLENGE.
There are factors outside of the market that are guaranteed
to affect how this first quarter plays out. Andy Nelson,
president of Willis Allen Real Estate, told Forbes his
predictions: “It’s basic Keynesian economics of supply and
demand fundamentals,” he says. “Right now, the biggest issue
is the threat of COVID. Big decisions are on hold. Though I
still see future growth in the real estate world.”
Despite these worries, the past couple of years have proven
that quality industry professionals are still able to operate
amidst a pandemic. Virtual tours, drone photography and
social media allow for homes to get remarkable advertisement
to prospective buyers. In addition, sellers can rest assured
that every step of the transaction is accomplished quickly
and safely. I have personally found that by being available
via phone call, email, Facetime, Zoom and many other
platforms, my clients feel as if they have constant access to me
throughout the buying and selling process—regardless of the
miles between us. When you’re selecting an agent, don’t settle
for anyone who lacks the tools to help you out of whatever
problems may arise down the road.
If you plan to make a move in 2022, the best thing you can
do is enter the market with a strong plan and an even stronger
first foot forward. For advice on how to do that with the
utmost confidence, give me a call at 386-405-1178. Together
we can make a plan that gets your house sold on your schedule,
to the benefit of your wallet. And to all our readers, please
enjoy 2022 and keeping making the Port Orange area a great
place to call home!