Fall 2013 – Market Update

Marketing and strategyI hope this message finds you and yours in good times and in good health.

News reports about real estate are all over the board with mixed messages. So the question I get asked a LOT is always, “How’s the market?” Here’s my official Sunset Creek Realty “STATE OF REAL ESTATE” update as of October 8, 2013.

It is true indeed that the market has improved a bit, but the ride is a lot longer and bumpier than we would like. Let’s get right to the numbers. In Guilford, through the first half of 2013, there were 111 sales vs. 104 in 2012 and 88 in 2011 during the same period. Please know that there were 128 sales during the same period in 2006 and 119 in 2007. A little better each year but it clearly is still a buyer’s market.

I think it is going to be a long haul to get back to parity between buyers and sellers. My take on the equality is when there are about 150+ listings during the spring market. This past spring there were as many as 263. Even today, at the end of the main selling season, there were 245 active listings. I will say that of those actives, 35 were listed as “On Deposit – continue to show.” However that status means that they are shaky and probably ½ will fall apart and be put back on as straight active.

Bottom line again – Economics 101 talks about supply and demand, and desire for balance between the two. We have just not made any inroads in reducing the supply, and there is no apparent increase in the demand.

Also, the median price was $380,000 in 2013 vs. $513,500 in 2006. With the exception of a small number of high-priced homes, the activity is in the lower price brackets – under $500,000. Well-priced homes are actually selling “fairly quickly,” although 98 DOM (days on market) is a far cry from 30 – 40 days of years past.

So where are we going here? I don’t think the demand will pick up demonstrably any time soon. Reasons? There are not significantly more jobs available, and interest rates are as low as they have been for a long time now and they appear to be stationary for awhile. There just does not seem to be a lot of confidence in the economy, and there has been a slight change in attitude in the American dream of home ownership. So until we see more than a very gradual change in the balance of power (seller/buyer), it will be several mores years before we get back to “normal.”

OK, so you know that the market conditions are a little better – now what? The bottom line here is, we want to be your “go to” resource for anything related to real estate. How are we going to do that, you ask? What can we offer you?

For one, in addition to Sunset Creek Realty, we have 2 sister companies that afford us a synergy and resources that most companies do not have:

  1. Sunset Creek Development has become the leading building and development company in the area. We have many great subcontractors and contacts should you need a recommendation for a good electrician, plumber, or have a project you need some advice on. My partner partners performed over 4,000 building inspections before we formed that company and is a great resource should any issues arise. Also, over the years as a broker, I have attended over 500 inspections and have a fair amount of knowledge myself about many of the issues related to inspections.
  2. Our storage company, Sunset Storage (seeing a theme here with the Sunset name?) features a great downtown location and is state-of-the-art, clean, neat, and affordable. Please know that we are almost always full, but are happy to put our customers at the head of the line for the next available unit that meets their needs as well as offer discounts, sometimes as much as $500 off.
  3. Our real estate company, Sunset Creek Realty, may not be the biggest but we pride ourselves on being the best. We have 8 agents with a combined 130 years of experience. No other company can boast that. We have two agents who also hold mortgage licenses; that give us up-to-date information on the best mortgages, and how to get them. We pride ourselves on staying on top of the market so you can pick our brain about anything from market conditions and forecast to financing options. We will tell you the real scoop. Personally, I have 34 years of experience and pride myself on my knowledge of anything from contracts to inspections (as I mentioned, I’ve been to 500), financing, and more. Anyone can handle the easy transactions. You just never know when one may get tough. That’s when you will most definitely need the experience.
  4. As a returning client, we would like to think you are part of the Sunset Creek family, which means we are prepared to represent you at a moderated fee aka the family discount.

We appreciate any referrals you may have for us, and pledge that we will value that referral and take care of them just as we would you.

Why do business with us? Experience, trust, and communication are top priority in the selling relationship. You can always count on us at Sunset Creek for all three. We WILL always will treat people right – we are here for the long run. Give us a call for anything, FREE advice, contractor recommendation, or just stop by for a cup of coffee.

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