Recovery Doesn't Have To Be Perfect

While people seem to feel lately that we have avoided a "double dip" problem, there are various conflicting statistics and opinions about the actual health of the economy.  From our point of view, we can see that the real estate sales units and average prices in our region haven't gone up very much in some cases, and that prices have gone down in many areas. 

This doesn't necessarily mean that the price of a house is still declining.  Very few of the sales are repeat sales of the exact same house, so it's very hard to tell what is happening on a micro level.  Since the current market includes so many first-time homebuyers, the average and median prices are bound to be lower, as they are skewed to the lower end.  Also, there have been so few high-end sales in some towns that it's hard to have a meaningful average. 

What is true is what we're hearing.  We aren't hearing as many people say that they are waiting to see whether prices go down further.  We aren't hearing as many people say that they are renting because they can't sell the home they left behind when they relocated.  We aren't hearing as many people talking about another major decline.

While it is true that buyers still expect good "deals", often on homes that have already been priced to sell quickly, and while it is true that they want every detail of the home to be perfect, the conversation has shifted slightly.  The supply of houses on the market is declining around the country, and is notable in certain price ranges, at least for new listings.

The characterization I would use to describe the shift in mood and outlook is that we have switched from a "glass half empty" mode to a "glass half full" one.  That means that, while prices haven't risen, and while the market is a long way from roaring hot, people seem more balanced about the future of the economy, and their own futures.  Not exactly sanguine, but calmer.  Maybe it's the "new normal", or maybe it reflects a generation that barely remembers a skyrocketing real estate climate.  No matter the cause, we're glad to see it, and we're glad to be in a more positive selling environment at last.

Activity Abounds

Finally, spring has sprung, and the real estate market has responded.  I hear stories every day about listings that have sold in one day, listings that have not sold for two years and now have two offers in one week, listings that    are having showings right and left, and buyers that are finally moving off the fence.

The market continues to be driven by first-time homebuyers, and there are still people moving here from other places that are choosing to rent before buying, but the activity is clearly on the upswing, and there is much more of a sense that things are beginning to recover.  While we have more inventory than many other regions of the country, even we are seeing quick turnover in some neighborhoods and price ranges.  For instance, Guilford still has 275 homes on the market, which is a 50% increase over last year, but houses are selling quickly there when they come onto MLS.  East Rock in New Haven has 30 houses for sale, but one of our agents just sold one in a single day.

Have you been waiting for the market to turn so that you could buy or sell?  Have you been waiting for prices to bottom out?  Have you just been waiting?  Wait no more.  The time is now!