Feb 3, 2013
Q: How does it appear the real estate market in our area is shaping up?
A: It appears that the real estate market in our area is stabilizing. I believe we are going to see another wave of foreclosures and short sales in 2013, and as a result of that, the market may dip yet again. That dip will be the result of the five-year adjustable arm mortgages from 2008 that will balloon this year. However, once we brave that final wave, we should start seeing single-digit appreciation before 2015.
For those sellers still on the fence, now is the time to put your home on the market. Interest rates are still historically low for buyers. There is increased demand, but low supply this time of year. Sellers have the best chance of getting the highest price during these winter months.
Come spring, there will be a flood of inventory and not enough buyers, thus increasing supply and decreasing demand. And let’s not forget the proposed 4 percent federal conveyance tax that is being considered.
If put into effect, those sellers who are holding off are going to kick themselves for not selling sooner. That tax may prohibit many intended sellers the ability to sell at all. My advice is strike while the iron is hot, or at least warm.
— Danielle Rownin, Keller Williams Realty, Trumbull 203-459-4663