Spring 2013: The state of the real estate market

What a difference a year can make! When I blogged about the state of the market a year ago, it was just starting to see some minor improvement. Homes were selling, buyers were jumping back in the market, and prices were no longer dropping.

Now, the market here in Atlanta has a totally different complexion. And we haven’t even really hit the hottest-selling Spring months yet.

I’ve been selling real estate in Atlanta for over 25 years, and I have never seen the inventory as low as it is right now in intown Atlanta. I have a backlog of buyers ready, willing, and able to buy a home, but we can’t find homes for them to buy. When a good new listing comes on the market, it is usually snapped up immediately, sometimes with multiple offers pushing the sales price above asking price. I’ve taken to exploring all kinds of creative ways to find homes for my buyers.

While this sounds like great news for sellers, and very frustrating news for buyers, it’s actually a good sign for the real estate market. Indeed, right now is a great time to buy or sell a home here. Obviously, from a seller’s standpoint, this is a good thing – if you price your house appropriately, you should have no trouble selling it quickly. The sales prices are rising, and will continue to do so as long as the principle of supply and demand continues to be in the seller’s favor.

I don’t, however, recommend sellers waiting to see if the prices go up more before putting their homes on the market. Once the supply and demand stabilize, which can happen very quickly, a seller will face much more competition, and selling may not be quite so easy. Additionally, if you plan to buy another home when you sell, it makes sense to jump back in the market as a buyer before prices rise. The benefit you miss on one end will be made up for on the other.

Clearly, this is a very frustrating time for buyers (and their agents). However, if a buyer can be patient, it’s still a great time to buy a house. As I said before, the prices are most definitely heading up. Mostly, it’s a case of buyers learning what the market is like, and not having un-realistic expectations. I hear from people who have not had recent experience with the real estate market things like “Can’t you pick up a house for a steal these days?” or “Aren’t sellers really desperate now?” No, and no. The real estate market, at least here in intown Atlanta, is very dynamic. What was true a year ago, or even six months ago, is not necessarily true now.

In a not so shameless plug – for my profession as much as for myself, I would also stress that there has never been a more important time to use a Realtor, whether for buying or selling. Sellers may think it would be an easy time to sell their homes themselves, but there are so many aspects of selling in this kind of market that most sellers are not equipped to deal with.

How do you know if your house is correctly priced if you don’t have the most current information on comparables in the current market? How do you deal with multiple offers? How do you know if the buyers are qualified, which is a vital part of the equation, especially now, when lending requirements are extremely strict? There are many more reasons to have a professional Realtor help you sell your home.

On the buyer’s end, I can’t even imagine navigating today’s market without the help of a Realtor. To begin with, finding a home may seem easy with the internet at your disposal, but hooking up with a Realtor who is looking out for you will vastly increase your chances of finding a home. We do a huge amount of networking, which often enables us to know about homes for sale before they officially hit the market. We also have access to real-time updates of new listings, so you’ll know the minute a home comes up for sale. Finding the home is only half the battle, though. Figuring out what to offer, how much the home is really worth, and how to structure an offer to keep you protected in the transaction is something that a buyer shouldn’t tackle on his or her own.

Potential sellers – seize this window of opportunity and get your house on the market! Buyers – hang in there: Though it may be frustrating, in the end you are getting in on the market before the prices go up significantly more. Get the word out and tell everyone you know that now is the time to buy or sell in Atlanta.