Spring Market Recap
Written By: Suzanne Gwilliam, Realtor
And here we are, wrapping up another Spring Market. It’s been a wild ride, for sure!!
Bidding wars & cash buyers have definitely taken over this time! I’ve never seen so many cash buyers in all my career! It looks like the Baby Boomers are finally downsizing and with that, they are kind of taking over the upscale, Move-In-Ready townhome market! The good news is that Move-Up Buyers have more choice in Single Family homes, the bad news is that townhomes are jumping up in price as Cash Buyers blow away the competition. I’ve seen Cash Buyers come in well over asking price, waive the appraisal and blow buyers who need a mortgage, right out of the water!!! If you are looking for a townhome under $500,000, you better be ready to fight for it!
Of course, not all townhomes are selling on the first day they hit the market, but the ones that are nicely painted with decent kitchen and floors are going like hot cakes. With premium prices paid, Buyers are still holding on the Home Inspection contingency, which is interesting, because in past markets, that was the first contingency to go. Now, that we have Buyers with plenty of cash to throw around, they are more likely to waive the Appraisal Contingency.
Nationwide, prices have only gone up about 3% in the last year, but I’ll be very interested to see how Bucks & Montgomery County have performed this past Spring. Inventory took a little longer to increase this year, but now we are seeing more Single Family homes hit the market. And with the end of the school year, we should have a pretty strong Summer Market as Buyers try to make the move before September.
Home Inspections are still very important to Buyers, so Sellers could save themselves a lot of pain and frustration, by getting a Home Inspection before they list their house for sale. The nit picky things that Buyers want fixed before they move in, can cause a tremendous amount of stress for the Seller during the sale process. Broken window seals, electrical issues & clogged gutters come up routinely in the Home Inspection, as well as Heating Systems that need to be serviced. If you’re planning on listing your house this summer, spend the $500 bucks and find out what you can do before the sale to get your house ready to sell. The last thing you’ll want to deal with is the kick in the stomach the Home Inspection will surely deliver! A little preemptive work on your part, will definitely be worth it in the end.
Buyers, be ready to make your best offer, the first time. You may not have the option to up your bid if there are multiple offers. When placing an offer, it’s important to look closely at the Days on the Market for that specific neighborhood. Just because they have an Open House advertised in the Multiple Listing, doesn’t mean that the house will still be on the market come Sunday. Get plugged in to the MLS so that you get daily updates and don’t wait for Zillow or Trulia to tell you what’s new. They aren’t updated as often as you think.
You’re best bet is to work with a Buyer’s Agent who knows your target market and can get you into the new listings, the day they hit the market. Time is of the essence, so get your financials in order and be ready to make your best and final offer, the first time around.
Having said all this, statistics are showing that this may be the crest of the Seller’s Market, but only time will tell. With prices still going up, now is definitely the time to sell. The good news for Buyers is that rates are still low. So, the tug of war continues and we’ll just have to see if the projections are correct, that we will be moving into a Buyer’s Market next year. More inventory is definitely a sign that this could be happening, but with prices still going up, at rapid speed, it might not be happening as soon as next Fall. Only time will tell. Happy Summer and don’t hesitate to call an agent or your’s truly, to get an accurate gauge on the market!