March comes in like a lion and out like a....REALLY REALLY BIG LION

As the 2014 selling season, pining for a break from the frigid temperatures, attempts to get up to full speed, we are seeing the market shape up exactly as predicted some months back: Extreme inventory shortages. The good news: Many homeowners who were previously underwater on their homes (owing more on their home than it was worth) are now finding an exit strategy as prices continue to rise. We are also seeing builders recover and are finding not only signed building contracts for completion, but reduced risks in the speculation building market which will get them going again too. For this we are all eternally grateful.

On the buyer's side, the current market can be a bit frustrating. Many homes are selling quickly, some with multiple offers resulting in sales at or even above asking price. We are seeing open house traffic in excess of 20 groups of visitors at some locations, so we know people are ready to buy. The big question right now is: At what point does the market become balanced?

The current Board of the Federal Reserve has stated they will continue to reduce stimulus as the economy improves. To date they have, after each meeting since last year, reduced the amount of mortgage backed securities they will purchase. Interest rates, while not spiking per se, have increased enough to cause the home affordability index to decline modestly. One need not be a rocket scientist to figure out that with prices and interest rates both on the incline, it is best for buyers to jump into the market now before it gets too hot, both literally and figuratively, which leads us to the lion/weather analogy in our title line:

The extremely cold weather has kept some buyers inside and away from open houses. We believe, but certainly cannot guarantee, that the temperatures will rise towards the end of March. When they do, it will be a wide open throttle and very hot market into the summer...even faster paced than what we are seeing now. Sellers wishing to avoid a possible slowdown in the market as interest rates continue to rise should contact me right now to work on staging, pricing and pre-marketing. We will then be fully prepared for the spring market.

As always, I thank you for taking the time to visit this blog.  If I can ever help you or your family with Real Estate questions or needs, I'm here to help!