Today’s Housing Numbers, Then There’s the Good News
April 29th, 2008 categories: Market Trends, Real Estate News
In a survey released today by Standard & Poor’s, home prices have posted another record decline. The S&P Case Shiller Home Price Index, which tracks 20 of the nation’s largest housing markets, showed prices falling by 12.7% in the 12 months ending February. According to the Indices, 17 of those 20 markets posted their largest year-over-year declines ever. The good news for those of us from the Washington D.C. metropolitan area is that Las Vegas was the hardest hit with a drop of 22.8 percent. Ours, on the other had, was a decline of 13 percent. If historical home prices are something you’d like to look at, visit the S&P homeprice history which they’ve been tracking for more than 21 years. 
For anyone paying attention to the market, this price drop should not come as a complete surprise. With an increasing amount of foreclosed and short sale properties on the market, downward pressure on home prices are par for the course. According to RealtyTrac, the leading online marketplace for foreclosed properties, March figures show a 60% increase of foreclosure properties compared to last year. While this market information isn’t what sellers want to hear, the good news is, their focus shouldn’t change when marketing their home.
SELLERS
The keys to success at selling a home don’t change with the market. While there are a number of key components to properly market your home, three critical keys are:
- Understanding Your Market
- Remember - Prices and market conditions vary depending on time, location and the condition of your home.
- Have Your Home in SHOW Condition
- Especially in today’s buyer’s market, make sure your home shows like new, if possible. Hiring a staging professional may well be worth the expense. Remember the old saying, “you never get a second chance to make a first impression.” So, make the most of it!
- Price It Right
- While the first two keys are vital, pricing it right may be the most important decision you make. One of difficulties in today’s market, is an appreciation by sellers of current market conditions. That is why it is extremely important to depend upon the pro, your Realtor, for advice on the price. It is their domain - let them do their job, and listen. Any good agent will give you the support data used to support their recommendation. Trust them. Hopefully, their price justification will reinforce why you chose them in the first place to market your home.
For buyers, things don’t get much better….
BUYERS
As mentioned in an earlier blog entry, today’s market is about as good as it gets for the prospective home buyer. Inventories are at record levels, and interest rates are extremely low. Outside of a complete market collapse (in that case, we’ll have bigger worries than the diminishing value of our home), buyers and investors can almost pick and choose their next home.
If you do decide to make a trip to your local county Courthouse for the auctioning of homes, make sure your Realtor has clearly explained what’s involved. While there are great deals to be had at the Courthouse steps, make sure you show up with money in hand. Yes, a Cashier’s check will work. Again, if it’s your first auction, make sure and do your home work.
However, if you’re buying your next home the old fashioned way, give your Realtor a call. For the home buyer, refer to these 10 Critical Steps as you begin your journey. And, remember, in this market, the numbers are your friend.
I agree with your list - I call it the “holy trinity of real estate” - or the key to selling any property in a buyer’s market:
1. Great Staging, 2. Aggressive Marketing, and 3. Realistic Pricing.
John C