We hope you had a great holiday season and that 2013 holds lots of success for you. When it comes to real estate, however, our wishes for your success are tempered with the reality of our local markets.
You’ll be hearing from the experts about how well the market is doing, and indeed, it is doing better. Zillow, for instance, last week talked about their expectation that homes in the United States will gain more than $1.3 trillion in cumulative value in 2012, the first annual increase since 2006. Zillow looked at 177 metros and said that more than 75 percent of them saw “historic affordability and sustained investor interest” keeping “demand at a boil.” That’s great – if you happen to be in one of the neighborhoods they looked at where homes are increasing in value.
But others are sounding caution. Mark Zandi, chief economist at Moody’s Analytics and a well-known commentator on the national real estate picture, is among those urging caution. He warns that increases in inventory could steal growth away and that our economy, while growing at 2% to 2.5% over the next year, is basically stable. He also predicts a tough economic climate in the first half of 2013, especially if Congress can’t agree on getting nation’s finances in order.
I’m with Zandi. We are seeing some improvement in the market here in Northwest New Jersey. We’re seeing some stabilization in prices and we’re seeing some good inventory coming on.
But we still have a lot of homes – as many as a quarter in some area towns – being sold short and more heading toward foreclosure. Those buyers who already are underwater are too deep to be saved by any slight increases in prices and the potential for tax increases could push them further into debt. Our economy is doing OK, but we’re not generating that many new jobs in the area.
It’s a time to be optimistic but act cautiously.
So does this mean you should give up on buying or selling your home? Absolutely not. We’re able to sell well-staged homes that are appropriately priced and in areas with good schools and transportation for a reasonable price in a reasonable amount of time. The key is your definition of reasonable.
That’s where a Realtor can help you. Realtors are experts at buying and selling homes in a particular market. They can help you understand what “reasonable” is for the neighborhood in which you’re listing or buying a home. They can tell you how to get the most out of the home you’re listing and how to get the best deal for the home you want to buy. It’s a time where a Realtor’s experience and expertise is a key part of the process.
Your first step if you want to sell your home or buy a new one is to learn what you can about the area in which you’re selling or buying and who the Realtors are who service those areas. Pick someone good and listen to their advice.
Buying and selling a home, even when done correctly, is never easy. While it’s not as challenging as it was a year or two ago, it’s still requires good counsel, homework, flexibility and patience.
It’s our wish that your real estate goals are all met during 2013…and our job to make that happens.