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Home prices hit record high on low inventory

Tuesday, July 11, 2017   /   by Brad Miklovich

Home prices hit record high on low inventory

Well here we go roaring into the third quarter of 2017. It has been alot more of the same in the second quarter. Inventory of homes is way down still (-8.4% nationwide year of year). If we think about that for a second, last year was a very tight inventory market that saw homes selling very fast. This year is tighter 8.4% tighter. We continue to see a market that buyers are fighting for homes and sellers getting more money than they anticipated. Home prices in the latest home sales report hit another record high!!! Home prices across the country are up 5.8% year over year for a median sales price of $252,800.

As an agent who represents alot of buyers, sellers, and investors, I am constantly asked what is causing prices to go up so much? The answer could be found in the first day of Econ 101 supply and demand. As interest rates continue to stay low and many of our younger buyers are getting better paying jobs they are looking to join the older contingent in buying. We see many folks looking to downsize and many of their children looking to purchase. The biggest problem is finding them a house. The higher end to luxury market continues to see inventory available, it is the smaller to mid sized market (up to $300,000) that is seeing the most competition.

Ok so if you are a buyer how do you begin to think about stepping into this market without getting burned out looking at homes just to loose them to a higher, better, cash offer? It starts with the search. Where are you looking for the homes you are interested in? Many buyers begin their search online before they even begin to contact a real estate agent. In the big world of advertising we live in, many people turn to Zillow or Trulia. Stop There!! These are the two companies with the most investor money to spend online trying to hook the consumer, not the companies with the best data. Zillow survives by taking the data stream from multiple channels (Kw.com, remax.com, Realtor.com ect.) trying to repackage it and then presenting it as their own. Oh then spending tons of investors dollars to get you the consumer to look at their old mostly inaccurate data to click on an agents name (who spent usually at least $2,000 month to be there). Ok now I feel better Zillow rant over, please if you are browsing on your own without a link to an agents MLS portal use a site like realtor.com, or many of the brokerage sites out there like (kw.com). These sites pull data directly from an MLS feed.

Step two is to meet an agent, not any agent, not someone who works during the night and carries a real estate license, a real full time real estate agent. A, I support my family selling homes. You need to find the person who works this market everyday, an agent who knows the other agents, one who knows the "games" some agents try to play, and knows the strategies to use in order for you to get you the home over some other less experienced agents. You see, many of us have worked in this market awhile and have done transactions with other experienced agents that have gone well. Knowing the history and tendencies of other co agents is a big deal when presenting to a seller. Knowing which banks can close loans, and close on time, knowing the difference between a sale contingency and a concurrency, being fair to all parties while still getting our clients interests achieved. So step two is pick an agent who knows what they are doing, someone people like and likes doing business with.

Step 3 get a referral from a lender, not your local bank where you do your checking or saving and has a nice guy or lady sitting in the corner waiting to offer you .10% off your car interest rate. You need a lender who does mortgages, someone again who lives eats and sleeps mortgages. This is the same thing I pointed out below with picking an agent. Do you want someone who specializes and makes all their money in doing checking and saving accounts and investing in CD's but dabbles in mortgages? This is a big. When agents who represent sellers see offers coming in with buyers pre approved with banks who are notorious on not closing on time, writing weak pre approvals, who stink at communication, how good do you think your chances are of getting your offer accepted when the seller is looking at multiple offers? Ask your seasoned agent for a referral, it's our reputation on the line and we would only send you to people we would trust and vise versa with the local lenders.

Following these three steps up front will give you an advantage right away when you are out looking for your next or first time home purchase.

Ok sellers, you are reading this and it all seems awesome!! You are thinking how do I get all these zillow people to start bidding my house up and putting a ton of money in my pocket? Well I am here to let you know all these "zillow" people are walking around informed. Buyers today with all the information available know the market, they know your neighbors home price, they know the comps, and they are not willing to be taken advantage of. I said prices are up and yes they hit a record high up that number is only 5% year over year, it's not like if you invested in bitcoin 10 years ago. Again you need a strong agent who has a track record for success and a plan. Posting some cell phone pictures, and a sign in the yard is not going to get you top dollar in this market. As a seller if you are willing to listen maybe pick up a paint roller and do a couple small projects, market your houses like it is something worth $300,000, and present it as such with a strong agent, you can take advantage of this market.

So as we head off into the second half of the year what's going to happen? Well my feeling is it is going to get better. As the news cycle steps away from some of the political talk it will start talking about record home prices, this will catch people's attention and sellers will begin to sell. My feeling is this will be the time the fed start really hiking rates causing buyers to step back, inventory to moderate along with prices and we will move back into a balanced market. This is how markets work, they work that way in the financial markets, commodity markets, cash grain markets, again this is all about economics and supply and demand. It will not happen overnight and if you are thinking about selling, this market is not due to fall off a cliff. As we head into the fall and winter I do expect it to start moderating, but I really think we have at least another year of low rates, tight inventory and good prices.

As always my self and my team are here to help answer any questions you have, or to get you a free market analysis on your home. Call me, text me, email me anytime. We are here. 440-941-3641 Bradmiklovich@kw.com. www.BradleyAlanRealEstate.com

Below is a quick list of some of our latest listings as proof of what I am saying above is real.

Enjoy the 2nd half of summer and Go Tribe!!

2936 Vincent Silver Lake under contract 3 days!! Full Price

1004 Wrens Hollow Kent Sold in 12 hours over list price $248,000

3424 Mallard Aurora Sold in 1 day all cash $235,500

9640 Evan Miller Trail Olmsted Township: Sold in 10 days $4,000 over list price: $268,750

6339 Cheryl Pl, Concord, OH 44077 Sold in 3 weeks all cash full ask price: $212,500

2515 Hanson Ave, Stow, 44224 sold in 3 weeks $192,500

5624 Nicholson Dr, Hudson, OH 44236 Previous expired sold in 1 week

5873 Queens Hwy, Parma Heights, OH 44130 sold in 1 week had 10 offers

806 Silverberry Ln, Hudson, OH 44236 sold in 3 HOURS full ask $349,500

6206 Velma Ave, Parma, OH 44129 under contract in 1 week

2629 N Haven Cuyahoga Falls - Under contract in 2 days Full Price

Keller Williams Chervenic Realty
3589 Darrow Road
Stow, OH 44224

The listing information herein is provided through the MLS IDX database. Information is deemed reliable but not guaranteed. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange Program of NEOHREX.
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