Saratoga News
Homes
It's spring (finally), and the market is blooming
Real estate activity is expected to increase
By Jean Newton
Realtors are waiting for the rain to go away so the spring real estate can finally blossom, since the weather has been a definite factor in the activity level and sluggish start to the season.
"I think we may be going right from winter into summer the way the weather is going, but identifying the spring market should not be too difficult," said Steve Bellumori of Coldwell Banker. "It seems that sales in general have tapered down over the first quarter due to the relentless rain, yet there seems to be a good number of people attending the open houses."
Bellumori thinks the market is finding its balance again. "We will have a very strong spring market coming up shortly, but not with the unbridled bidding that took place on a number of homes during the first quarter of last year."
Interest rates play a factor in how the market will shape up this spring as well. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.32 percent in March, up from 6.25 percent in February; the rate was 5.93 percent in March 2005.
Bellumori believes the interest rates have crested, and there is less of a concern to get in under the rate increase wire as there was last year. This means starter to mid-range properties should all enjoy favorable activity, and properties in the upper mid- to higher end will also experience good activity.
"As long as the entry-level properties are selling well, then generally the domino continues to create sales in the price points over entry level. At the very upper end, it's pretty much a stand-alone market, not affected one way or the other by interest rates as these are properties generally not tied in with any significant financing," Bellumori said.
While several communities have encountered slower markets, Bellumori predicts these should also start moving again as prices settle in. "There are now many very good values in the market. In general, it's looking to be a very healthy market for both buyers and sellers," he said.
Realtor Aileen LaBouff with Coldwell Banker sees the market as a little more restrained than over the last few years, but wouldn't describe it as "flat across the board."
"Now that the rains seem to be abating, I would expect that the competition may increase slightly. The warmer weather always makes people feel a little more motivated and prepared to take bigger steps. Add to that the fact that interest rates are under scrutiny again, and we may see an increase in the buyer pool causing some increased activity," LaBouff said.
The competition for the best homes is still there, with multiple offers still being received on approximately half the properties sold in LaBouff's office.
"The key seems to be in the preparation and pricing of the property. The old adage of making something look like a good deal seems to very much ring true and will generate interest. The reverse side of that is those properties that are not well prepared and priced are sitting around for longer periods and selling much under previous comparable properties," she said.
LaBouff suggests buyers need to be very aware of the potential increase in competition and the possible implications that come along with that. She also recommends employing a professional Realtor who can effectively communicate with the listing agent, thereby allowing the client the ability to assess the interest level, market conditions and comparable properties. She believes this information is critical in formulating a successful offer.
The advice of a professional Realtor will also help sellers prepare their paperwork and showcase their property to the buyers who matter.
"I would suggest that sellers need to be aware that the competition is no longer an across-the-board phenomenon. Careful marketing, excellent presentation and the right advice will ensure the most positive results," LaBouff said.
Helen Cockrum of Alain Pinel Realtors thinks the spring activity may have been slightly delayed because of bad weather.
"The spring market seems to be shaping up very well. The next two weekends should be very busy for open houses," she said. "My advice to sellers is to hire a stager, make the front yard look spectacular and please listen carefully to your professional Realtor as far as pricing is concerned. Well-priced homes may bring multiple offers.
"My advice to buyers is to have a loan pre-approval letter in your pocket and to hire a professional Realtor to work for you," she added.
According to Thomas M. Stevens, president of the National Association of Realtors, changes in the housing market mean consumers need more professional guidance.
"Changing waters require navigational adjustments, and this is especially true for home sellers in most areas who are now dealing with buyers that are on equal footing--it's no longer a seller's market," said Stevens. "Most buyers in today's market are well-informed and have agents that represent their interests, so sellers need good advice on how to show and market their homes in the current environment, as well as negotiation skills--critical values that real estate agents bring to the table."
