We’ve all struggled through the various stay-at-home mandates over the past few months. The Covid-19 news is never far from our minds. Our economy is taking a beating, and people are wondering if there will be a housing crisis like we went through in 2008.
With the national unemployment rates at an all-time high, let me remind you that real estate is never national. It is always local. So, how do you know what the market is doing in your neck of the woods?
Here is a simple formula to use wherever you live. If there are more houses coming on the market (new listings) than are leaving the market (going under contract) for three straight months, the market is in decline. Conversely, when there have been three consecutive months when more houses are going under contract than new listings coming on the market, we are experiencing an appreciating market. So is the Shreveport/Bossier City market appreciating or depreciating?
Let’s take a look at the figures for homes in our area to give us a good picture of the market trend in Shreveport and Bossier City.
As you can see, the number of homes listed for the second quarter of 2020 (far right of top graph), the number of new listings has steadily declined.
Now take a look at the number of home sold for that same period (second graph). That number is steadily going up!
More homes are going under contract than homes are being listed to replace them. This illustrates the classic seller’s market.
What does this mean for you?
For buyers it means less room to negotiate the fine details of a purchase. Sellers whose homes are market ready are finding themselves with multiple offers, backup contracts being offered, and even contracts with escalation clauses added. It can get tricky negotiating and keeping track of the deadlines and other moving parts in situations like this.
But wouldn’t it be fun?!
If you’ve thought about selling your home, now might be the perfect time. If your house is move-in ready, you’ve had a pre-inspection to take care of any major repairs, and a deep cleaning to make the best impression on buyers, your home will probably not be on the market long. Buyers are taking advantage of the extremely low interest rates right now. Take advantage of it!
Time for the sales pitch!
My marketing plan encompasses more than entry into the MLS and the ubiquitous yard sign. I strongly suggest sellers have a pre-listing inspection, take care of deferred maintenance, de-clutter, stage at some level, and price properly.
If you’re considering moving, give me a call to see if I can help you get your home sold and if we’re a good match for each other. I don’t bite!