Buy, sell, boom, bust, low, high, short-term, long-term…sign here. Are you sure there is uncertainty in today’s real estate market.? Why should there be? A September 2004 article published, in the well-respected Fortune magazine, titled “Is The Housing Boom Over?” outlined a very convincing case for an eminent readjustment in housing prices. Yet, if you read the Los Angeles Times printed in March you will read of a current shortage of available property that is leading many to expect exponential gains in appreciation. Experts, advisors, real estate professionals are unable to agree on the near future of the real estate market.
Just The Facts
During the first three months of the year, historically, Carlsbad will see an increase in the amount of inventory that comes on the market. Residents burdened with holiday pressures, company relocation or any number of life changes will push consumers to consider selling their property. Carlsbad sees around a 30% increase in the number of new homes for sale in January of the New Year. The inventory steadily increases as the summer approaches.
1st Quarter Review
With interest rates still low, inventory levels have been stable since the first of the year. Although the number of sales in Carlsbad for the first quarter is about 29% less that the previous five years, the available property has not overwhelmed demand for a Carlsbad residence. As of March 15, around 290 single family home sales were recorded in the MLS, compared to 435 from the year before. Although not all sales are recorded in the MLS, 2005 has begun at a much more moderate pace than previous years.
Increased Market Time
If you are a near-future home seller, be prepared for a longer time on the market. Currently, we have more homes for sale than compared to previous years. If more property comes on the market during the summer, the time a property will be for sale will increase. Since sales price is determined by a variety factors, there is no way to predict with certainty how an increase in inventory will affect ultimate sales price.
Final Sales Price
Your ability to sell for what your neighbor sold for will be determined by the amount of similar properties in close proximity. If a potential buyer has five options to choose from in your neighborhood, he or she will have much more leverage and will make an offer accordingly.