I have definitely noticed a recent increase in homes going under contract. I’m working with several buyers right now in all different price ranges, and we’ll come up with a list of properties to view. Within a week’s time, a third of the properties on their list will be under contract. Properties that have been on for hundreds of days are now being snapped up. It’s almost amazing.
The buyers are back.
There is more competition right now. Perhaps some buyers are rushing to settle on a home before down payment assistance programs, like Nehemiah, vanish this fall. Perhaps the first time homebuyer tax credit is encouraging people to buy. It’s still a little too early for the Election moves. Is there something in the water?
I think a variety of factors are contributing to the latest spur. Interest rates are still relatively low. The market is correcting itself…prices have come down allowing more buyers to enter the market. Sellers are more realistic about pricing their homes. They may also be more willing to make updates to their homes…because the ones I’ve seen go under contract are the ones that show well. Or like the author of one of my latest blog entries said, when the economy is uncertain, people turn to real estate for a long-term investment.
Whatever the reason, buyers should be as prepared as possible. Get your pre-approval before looking at homes. Because it often works out that you’ll find a home you love more quickly than you thought! Don’t assume that because a home has been on the market for a long time, it will continue to sit. If you like a property, but need time to think about it or see others to compare it with, have your agent contact the listing agent and ask to be notified if another offer comes in. That way, you won’t miss an opportunity to write the offer you were thinking about.