Bob’s Fall Newsletter
On a Personal Note
Where has the summer gone? As you might have guessed by the time lapse from my last newsletter, it has been a very busy summer. Here we are past Thanksgiving, and getting ready for Christmas. I hope you had a great Thanksgiving. And speaking of Christmas, Prudential is hosting Santa Clause to our office on December 1st and 2ed again this year. (Remember last year we had the big ice storm during Santa's party – ug). Bring your kids or grandkids for a picture with Santa. It’s a fun day. If I don’t get to see you by then, have a happy holiday season!
The world of Real Estate (and everything else, it seems) has been taken over by changes in technology. Santa will be loading up an amazing bag of essential gadgets that were unheard of just last year. Tina and I invested in smart phones this summer and have now have a hobby of learning how to use all the stuff that comes streaming to us. (I need a teenager as a consultant, smile.) This week I finally got around to working on my web page. Click on the Home Page to the left and check it out. I always appreciate comments. Programming this web site is fun to learn, but it is so time consuming. Providing good tools to my clients is a challenge because the industry keeps changing. Did you know some clients in California last year were buying homes over the Internet without actually seeing them or their agent? I wonder how that worked out for them with the recent changes in the market. OK, here are some of my thoughts on our present local market.
Buyer’s Market = Move Up Market??
If you have followed the local Real Estate changes, you probably know this is a strong buyer’s market, but is it the time to buy and sell? Especially right now in the “slow season?” To many families, the answer is a solid yes. Let us assume that you have dreamed of moving to a larger, newer, and more expensive home someday in the future. Is now the time? Let’s do the math.
Ok, maybe your present home would have sold last year for $200,000. That’s what it is worth now, right? Well, no, not really. Let’s assume in today’s market it will sell for $180,000, or 10% less than what you really think it’s worth. Ouch! Not fun, so far. But the dream home we find together for you may have sold for $400,000 last year. (A big step, but this is your dream.) To make it come true, today we could probably also purchase it for 10% less than in that hot market last year, or $360, 000. At first glance, it looks like a wash because you stayed in the same market. But wait! The difference is also 10% less, or $180,000 to move up to your dream home now, compared to $200,000 last year. Interest rates and closing costs today are also very favorable as the loan industry works it way out of these messy times. Yes, a buyer’s market is a move up market. Timing is everything.
So what is going to happen in the future? Who knows if market prices will continue to slip, or if prices will rebound, and when? What we do know is that it will cost you less to move up to your dream home today than it would have last year. Smart buyers are taking advantage of the realities of today’s market prices. Maybe that’s why our sales volume is higher this year than last in this “slow” market.
Want to take a closer look at today’s market and discuss your dreams and plans? Call me today for an appointment to look at current pricing in our market and to get a realistic price analysis for the sale of your property. We might even look into the crystal ball for the future of the market. Bringing reality to your plans and dreams is what I do as your Personal Realtor.
Have a Merry Christmas and a Happy New Year. Don’t forget to call me if you know anyone thinking about buying or selling a home. Referrals are great presents!
Bob