Great question! The answer depends on precisely where you are talking about. Not just Columbus vs. Las Vegas, but more like Dublin vs. Powell or even within Powell in the price range between $250k and $300k vs. between $150k and $200k. Each of these micro markets is different in the technical description of whether it’s a buyer’s market or a seller’s market (technically defined as more than 6 months of inventory).
Currently, the market inventory is extremely low in many areas and price ranges. For example, if you were to look at some of the more popular price ranges in areas that are traditionally in strong demand, you’ll find almost no inventory. My Economics 101 class that studied Supply and Demand seems to lead me to believe that the lack of supply with a steady or even rising demand will almost certainly lead to rising prices and that is now a seller’s market.
Already in the past few weeks, I have seen many multiple offer situations. In fact, I think that the last 3 or 4 offers that I’ve been involved with have been multiple offer situations with the final sales price ending up higher than the list price. I expect this trend to continue and probably become more extreme as the spring home buying season gets into full swing.
So, what’s “The Flip?” The Flip is what I’m calling what happened to our market. I was talking to a few of my “more seasoned” Real Estate Agent friends and they all agree that they’ve never seen the market change so quickly before or “Flip” from a Buyer’s to a Seller’s Market.
What to do about it? Well if you’re a buyer, it’s time to get into high gear to find your next home. Prices haven’t yet dramatically risen off of their lows, but they will soon. According to Fiserv, “The housing recovery is expected to grow at an annualized rate of 0.6% through the third quarter of this year, then gain momentum and prices are projected to grow 3.7% between the third quarters of 2013 and 2014 until settling down to 3.3% annual increases over the next 3 years.”
Interpretation: There has never been a better time to buy or trade up. With pricing still low, mortgage interest rates at historic lows, and the projected potential future price appreciation, it may be now or never. Don’t miss your opportunity to take advantage of this historic situation.
If you’re thinking of buying, selling or investing, please contact me for your FREE consultation. My team and I are trained to help you take advantage of today’s market. Give us a call… We can help!