It’s officially 2018 and that means it’s time to consider what the real estate market will hold in the New Year. The real estate market has had steady gains year over year for quite some time. The Orlando market was up over 11% from the previous year! And the market was up over 12% at the end of 2016. With such high year over year growth, industry leaders indicated the market would cool a bit in 2018. However, the inventory levels are so low even these economists have started to re-evaluate the expectations for the New Year.
If you are thinking of selling your home in 2018 consider these few tips:
- It is a seller’s market but we cannot predict the future. Many sellers hold onto their properties waiting for the market to keep going up, but a shifting market can happen at any time. The expectation is about a 4% growth in 2018 which amount to almost the average appreciation in a normal market (3%). So the days of huge gains are probably gone for now as the affordability in the area has declined driving more buyers out of the market.
- What does this mean for you? Sell when the timing makes sense for you rather than worrying about the market increasing drastically in another year.
- Buyers drive the market. Buyers are still buying, but the actual number of sales is about the same as the last year. This means that all it takes is a few more properties for sale to even out the market and make it more difficult to get top dollar for your home. If you aren’t ready to hit the market, consider getting ready to beat the competition. More listing competition means less negotiating power.
- What does this mean for you? Over the last few years, the month with the most listings on the market at one time has been June. Hit the market a little earlier to beat the competition if you plan on moving in the summer.
- Speaking of competition, it is always a good idea to list a few months before the most sales/closings are happening. Our buyers on average take about 3.5 months to close from the time we start working with them.
- What does this mean for you? Coincidentally, the month with the most actual closings is June too. To take advantage of the buyers who are closing in the summer, you actually want to have your home listed by March. This goes hand in hand with #2.
- First time home buyers make up 35% of the market. They are feeling more confident in buying at the moment but their incomes do not match the affordability of the areas they want to buy in and around the city of Orlando.
- What does this mean for you? Buyers are being pushed out to other areas of town. If you own a home in the Downtown Orlando area, the buyers may be moving further out because they can no longer afford the prices. Less buyers may mean longer days on the market in these hot Downtown neighborhoods.
- Consider your neighborhood market. Real estate is local. When we refer to the market being “hot” or a “seller’s market” we are referring to the general conditions. But if you notice a lot of for sale signs sitting in your neighborhood you may not be in a seller’s market.
- What does this mean for you? Always refer to whats happening in your direct location when deciding how to market and price the home.
If you are thinking of selling in 2018 give us a call to learn more tips for earning top dollar! Kathryn@ThinkLiveBe.com 407-494-2820