I have had a relatively good start to the year in sales; when the global uncertainty hit back in October, there was a lot of fear with both buyers, seller and us realtors. Uncertainty breeds that; not knowing if you will have job security, wondering if the sky is going to fall and real estate goes to hell in a handbasket, etc. As a result of this, most of us were quite slow in our sales in November and December. Coincidently, this is when we are usually slow-people wind down and start to think about Christmas, Hanakah and the holidays.
So when January came around and despite negative media attention to the economy, the sales slowly started to trickle in again. By March, I have been run off my feet. What happened? Why the turnaround? You can even see it when you are driving around; instead of sad flapping FOR SALE signs, we see, SOLD, SOLD, SOLD. I think what happened are a number of things:
1. we have record low interest rates; my friend, Dianne Chafe of Oriana Financial (www.OrianaFinancial.com ) sent an interesting little ditty to our emails last week. If you have a mortgage of $500,000.00 on last year's rates: (about 5.99% at one point), the monthly is: $3,200.00.
If you buy a new home and your mortgage is $600,000.00, your monthly is (currently 3.99% for 5 years): $3,156.00 (less than a year ago!!)
Great news for trade-up buyers!
The other thing that has happened is a transition from a seller's market to a balanced or leaning toward a buyer market. Make no mistake, there are still multiple bids in key areas of the city. I have been on 4 offer presentations lately and all had more than one offer. We are not seeing the crazy escalations above the list price (in my case, some were only $3,000 to $5,000 over the asking price).
The combination of above is a wonderful opportunity for our key people, our first time buyers to enter the marketplace. When the first-timers come in, it allows this movement, trade up, trade down, go to an assisted living facility. It's a wonderful circle.
Why are we valuable? We can advise people of the wonderful opportunities out there; but most importantly, for me, we are in this intense contractual relationship with our buyers and sellers for a few weeks or months. Shouldn't we as agents, all feel a sense of responsibility in counselling these important people? Our job is not over after the sale; we owe it to these folks to help up to and including the day of closing....and beyond.
Cheryl Bower
www.CherylBower.com
RE/MAX Hallmark Realty Ltd.