Real Estate Guest Series, Part 1: The Market
The home buying and selling process can be one of the most exciting things for an individual or family. It can also be one of the most stressful and confusing. To give some insight into the current state of our local market as well as give our readers some things to consider when it's time to make a move, I asked a group of realtors to answer some of the common questions we get from our clients and friends related to the housing market.
In the first part of this three-part series, I will share some of the responses I obtained to questions related to the general market. In the second part, I will focus on the responses specifically concerning things to consider when buying or selling a home. In the third part, I will offer some of my thoughts on some topics related to this enormous decision we will all likely face at one time or another.
Part 1 – The Market
Question 1: How is the market currently?
“We have Seller’s market in some areas and Buyer’s market in others. Location and schools drive demand. Overall we have a 5-6 month supply of homes which puts us in a balanced market.”
- Gusty Gulas, Brik Realty
“The Birmingham housing market is healthy and moving quickly. The Birmingham area experienced 8% growth in home sales in the first quarter of 2017, compared to the same period a year ago. Perhaps more significantly, the 3,162 units sold represented the best first quarter since 2007. While home sales are up, available inventory remains low, making the market especially attractive for sellers. Certain areas are obviously in higher demand than others, but it is not out of the ordinary for sellers to receive multiple offers within days of listing. There are opportunities out there for buyers as well, but there is no doubt we are operating in a sellers’ market. ”
- Daniel Odrezin, ARC Realty
Question 2: What are your thoughts on where the market is headed in the near future?
“The market is going to remain strong through the 2018 and into the 2019 year with more millennials wanting to buy and getting into homeownership.”
- Kim Mangham-Barelare, LAH Real Estate
“While there are not many indicators suggesting that the seller-friendly market will undergo significant changes soon, there are factors worth watching. First, most anticipate at least moderate increases in interest rates in the near future. While this will make borrowing more expensive, it will also push some potential buyers out of the market. Additionally, changes to certain regulations could create a more promising lending environment for housing developments. The decrease in competition on the buyer-side coupled with the possibility of growth in new construction could help with inventory challenges.”
- Daniel Odrezin, ARC Realty
Question 3: Are there certain times of year that are better for sellers? Buyers?
“For a seller, it seems to be the Spring and Summer. Spring for home buying seems to start early though; we usually start getting busy in February. For buyers, it is less competitive in the fall. I feel like football rules the South, therefore during the fall we don’t seem to run into as many multiple offer situations.”
- Kristen McGee, Brik Realty
“Generally, for sellers, the early spring through summer has always been the best because everything is green and pretty. But with our low inventory anytime appears to be a great time. Generally speaking for buyers, the fall and winter have always presented itself with homes that are perfect for that buyer wanting a “deal.” But right now if a buyer can find what they want coupled with very low-interest rates, anytime is a great time.”
- Kim Mangham-Barelare, LAH Real Estate
Question 4: What are some tips for how a buyer can find a deal in today’s market?
“Find a great agent! Knowledge of the resale value in a given area, schools, market trends, and other local factors will determine if a property is a deal or not. A full-time realtor will be involved in the local market on a daily basis.”
- Joyce Crawford, Keller Williams Realty
“Be familiar with your market and make looking at homes a priority. If you see something you like, view it as soon as you can because even a few hours or a day can make you miss the home you want.”
- Kristen McGee, Brik Realty
“Work with a Realtor – a licensed professional who is familiar with the area(s) you are looking and who works full-time in the real estate profession and will stay on top of new listings coming into the market. Make sure you have already connected with a lender if you are going to need a mortgage and make sure they have the information needed to prequalify you and that you have a letter stating this so that when the time comes, you are prepared and ready to submit an offer immediately on the property. There is no “waiting to see what happens” with a property today and then let your real estate professional pull the comparable sales to validate the offer you are considering to make.”
- Kim Mangham-Barelare, LAH Real Estate
Question 5: How have sites like Zillow.com and Trulia.com changed client expectations?
“These websites provide a lot of data that helps and confuses clients. These websites provide transparency, so I believe they have helped the consumer. Now read the fine print about Zestimates. Each county has an accuracy percentage. For Jefferson County, it is 8% accuracy, so that means if the Zestimate is $200k then what they really mean is the home is worth between $184k-216k.”
- Gusty Gulas, Brik Realty
“95% of buyers search for homes online, making buyers more knowledgeable about home inventory. With the increase of real estate information on-line, the number of buyers using a realtor to purchase is at a 14 year all-time high at 90%. Finding a home is just the first step to purchasing a home and buyers look for guidance in narrowing the home search process, obtaining financing, contract negotiations, and the closing process. The industry is changing on a daily basis and a realtor can provide updated information and expertize to get the transaction closed.”
- Joyce Crawford, Keller Williams Realty
Question 6: What would you say is the average variance between a home’s list price and what it actually sells for (ex. 95%?)
“I would say an average is 96-98%, but that depends on if the client takes the recommendation of their Realtor. When the seller wants to choose their own price, it may be closer to 90%.”
- Gusty Gulas, Brik Realty
