I keep getting calls/emails/texts from clients:
“When is new inventory going to hit the market?”
“Is this is the seasonal spike in housing that you were talking about [sarcastic]???”
“I can’t believe there is nothing see go out and see this weekend.”

 

Yes, it’s true – there are a lot of qualified buyers searching for homes, waiting for the right property to come along…. And there is a lack of well-priced inventory. Mortgage rates are insanely low, buyers are ready to transact and yet there are still sellers who believe that their house is worth more than their neighbors’ simply because they paid so much at the peak of the market! To those stubborn sellers: if you bought AAPL at $705 and today’s price is $630, what price can you get for your stock? $630! Nobody cares what you paid; it is only worth what a buyer is willing to pay today.

 

The Board of Realtors came out with the third quarter market statistics last week and here are some highlights:
- 3Q12 property sales in Westchester were up 15.4% from 3Q11
- Year-to-date sales (through the end of September) were up 10.6%
- Mean and median selling prices were down for every property class except condos (up 3.6%)
- 3Q12 inventory in Westchester was down 10.2% from 3Q11

 

Let’s remember that real estate is a supply-demand market, so assuming that demand (the number of buyers) stays the same, a decrease in supply should lead to an increase in prices… that is not happening. In order to get your property sold in this market, you have to be offering the best price among competing homes; if you are not, then your home will not sell.

 

So why are property sales up? There are plenty of sellers who understand that they have to price correctly at the outset – and they are getting lots of showings and some are getting multiple bids. For those overpriced sellers who get showings and no bids: realize that your property is being shown only to demonstrate to buyers how overvalued it is. That buyer will move on to the next, better-priced house and bid on it.

 

If you own property and have a mortgage, you should definitely consider refinancing. You can probably save a lot of money! If you have any questions about the process, I am easily reached by email (jeremy@jeremyzucker.com) or phone (917-549-5296).