Early Summer Newsletter and Market Updates 2016!
I hope everyone had a great Fourth of July and is having a wonderful summer. Our local real estate market is definitely having a great summer, as it is much stronger this year as compared to this time last year.
Low interest rates
My instinct is that this is largely due to the still very depressed interest rates, which only dropped further with the recent news out of the EU. Those low rates are causing many first-time buyers to decide to enter the market, and are causing many established owners to do ‘move-ups,’ both wanting to lock in at such historic low rates. My prediction is that we will continue to see a hot summer market, which will give us some momentum as we enter the typically slower fall and winter months.
What Types of Homes are Selling
We are seeing much more activity on houses that are remodeled with premium upgrades than on houses lacking those updates, even when priced accordingly. The reason for this is simple: homes, unlike other forms of investment, are typically where families live, and therefore there is often a lot of emotion driving the decision of what house to buy.
Many buyers will only pull the trigger on a home that they can happily see themselves living in (i.e. their “dream home”), and many people lack the ability to picture what a house would look like after being updated. So, only those houses that already have that ‘model home’ feel are commanding top dollar.
Improvements that make and Impact
Although every house is different as to what would be necessary to give it that ‘model home’ feel, typically we recommend the following upgrades before listing: neutral paint colors (Benjamin Moore’s Revere Pewter is popular); nice flooring (hardwoods are still preferred) and updated kitchen with granite or silestone countertops and stainless steel appliances.
Those updates (together with any unique update recommendations we make upon seeing the property) will make a huge impact with our online marketing strategies and on potential buyers’ first impressions, helping to command top dollar for our listings.
As always, if you or someone you know is thinking about buying or selling, doing a move-up or downsizing, or has any general real estate question, please don’t hesitate to give us a call or hop on our website! Enjoy the rest of the summer!