I thought it would be interesting to share the following information provided by our Association as it pertains to the Topeka Kansas Real Estate Market for 2008 Year‐end.
• Sales are down approximately 18% from 2007
• Listings input for the year are also down 16%, which indicates a fairly stable market
• Average sales price is down about 3% from 2007, however, it is up 1% over 2006
• Average Days on Market for year-end was 71, which is up from 64 in 2007 (11%) and up from 61 in 2006 (16%)
• Year end average inventory was 6 months - still indicating a balanced market
So, what does all this mean for the Topeka home buyer and/or seller? Well, I interpret it this way: Yes, sales were down 18% BUT so were listings down 16%. That means if I am a buyer and cannot find a home of my liking it might be because of the lower number of homes to choose from. The inability for a buyer to purchase may in reality have nothing to do with the ecomony at all. Buyers typically do not think, "OH WELL I can't find a house I like so I will settle for this one over here." Heck NO!!! They are saying, "I'll wait until something I like becomes available"!! AND That has nothing to do with the economy!!
SO, my recommendation is this: SELLERS: Get your house on the market. BUYERS: If you are first time buyers, yes, you now have to bring 3.5% downpayment (welcome to your parents world!! They probably had to bring that and more as downpayment) BUT you have a $7500.00 tax credit just waiting for you to take advantage of. THE REST OF YOU BUYERS: If you are watching any of the congressional hearings, well, you know. If the Senate version passes with the $15,000 tax credit, I think the real estate market is going to explode again.
Additionally, I think we DO have to see some drop in Interest Rates too to stimulate the first time home buyer. Bond Money with a reasonable interest rate would be GREAT too.
FINALLY, If you are real buyers and sellers, stay on top of the congressional activity bcause you want to be at the beginning of the activity not the end. Sellers, get your house on the market NOW and be a little patient. Average days on market of 71 days is Awesome in a RECESSION?
If I can be of any help to buyers/sellers please contact me as soon as possible. Becky Burghart 785) 640-8811 becky@beckyburghart.com or web at: www.beckyburghart.com
Attention Home Buyers: It seems like all the home buyers I have dealt with lately are talking out of both sides of their mouth. They say, "Yes we want to buy" but when we find a home meeting their criteria They cannot do it. The reluctance is due to: A.) Scared of the ecomony and/or B.) Have a house to sell and are not willing to take a loss on the Selling end but DO expect a DEAL on the buying end or C.) Want to "WAIT AND SEE" if rates drop or a better house comes on the market. I do not understand this thinking....IT IS A BUYERS MARKET!!! WHAT ARE YOU WAITING FOR???
I have come to the conclusion that this thought pattern really isn't their fault. I blame it on negative press and it is my job as a Top agent to help buyers understand what is happening and why they feel this way.
So, here goes. First let's address A. Scared of the ecomony. Rightfully so. If your job is unstable, I would consider not buying right now. So, stop looking at houses, save for your downpayment and when the time is right, you will be MORE prepared that you are today. I think back to when I bought my first home. (1986) The interest rate on my first home was 16.75%. I was 26, a newlywed and expecting a baby. We had to put 5%-10% down. My husband was in an appointed position and could loose his job without notice. The situation 20 years ago is not so different than today. However, interest rates are much lower now but the cost of living is higher too. We took a risk back in 1985 and lived in our home for 19 years. We were lucky enough to stay in our home long enough that the equity allowed us to buy a larger home and still keep our payments within a reasonable level.
Which brings me to B.) The buyer has a house to sell and are not willing to take a loss on the Selling end but DO expect a DEAL on the buying end. Here is a hard dose of reality. That's not going to happen BUT the good news is you will be better off today then I was when I bought and sold in 2005. It was a SELLERS MARKET just a couple of years ago. If you are planning to sell and buy a more expensive home you will most likely be ahead!! For example: Your home is on the market for $100,000 and you take 10% loss and sell for 90,000. Your loss is: $10,000. BUT, you buy a $200,000 house for $180,000 or a 10% reduction you save: $20,000. All of your friends who paid premium prices in 2000-2006 are now seeing home values drop. But Real Estate is a long term investment. If you are a seller and NOT buying a larger home but want something smaller wait until the market works to your advantage. Because this Buyer Trend will end.
C.) Want to "WAIT AND SEE" if rates drop or a better house comes on the market. These are the buyers that drive me crazy. ARE YOU KINDING ME??? IF YOU FIND WHAT YOU WANT, BUY IT FOR CRYING OUT LOUD. HERE'S WHY. Everyone knows we are in a Buyers Market so home prices are at a low point. Some buyers have told me thank you for opening my eyes because 6 months ago, they could not afford the house they bought. BUT no one will know when it will end. AND it will and it's coming!!! No one knows when. So, I ask you. What are you waiting for? That lower rate may not come and the better house you thought you wanted is now out of your price range.
Once the market begins to show signs of recovery the home prices will start going back up and so will interest rates. So, I say to buyers who can buy and are ready, willing and able. Get off the fence, find an agent that knows your market and buy now.
One more comment: IF you need help finding an agent, it would be my pleasure to assist in that process. Who better to find a good agent but another agent!!! It's just one of my services I offer to anyone in any state. I can find you an agent you will be happy with. CALL ME: Becky Burghart 785) 640-8811 or email me for help. becky@beckyburghart.com and if you are looking in the Topeka KS area we are the 6th MOST Afforable housing in the National, check out my website: www.beckyburghart.com
To Active Rain members: I just had to share a new video provided by the Topeka Chamber of Commerce. It is awesome and I wanted to share it with all of you. Click the following link and ENJOY.....This is MY TOPEKA.
http://www.topekachamber.org/living_topeka/quality_life/
If you are thinking of making a move, contact me: Becky Burghart www.beckyburghart.com or email me at: becky@beckyburghart.com
Attention Topeka KS home buyers: As a Top Real Estate Agent in the Topeka KS area, I keep abreast of the Real Estate Market activities that impact our local real estate market and I am happy to report that today March 18, 2008 interest rates for home loans DROPPED TODAY. Some local lenders as low as: 5.5%. They have been as high as 6.75% in recent weeks. If you are thinking of buying--DO IT NOW. If you are needing 100% financing I would not delay because lenders have pulled these types of programs others are talking of eliminating them OR if they offer them the Mortgage Insuring Premiums will naturally increase.
WE do not know how long these rates will be in effect. I encourage all buyers to take advantage of these low rates by visiting with your lender. If you feel you need professional services: Call me. Becky Burghart 785) 640-8811 OR For additional information visit my website www.beckyburghart.com and complete the Mortgage request form and the lender offering these rates will be contacting you. I am your one-stop-shop for all your real estate services.
REMEMBER: Topeka is self contained and does not alway reflect what is going on Nationally. While we have seen slowing in the real estate market, there are alot of great homes still available and rates are competitive. Contact me if you feel my services are needed.
Becky Burghart, Real Estate Agent; email: mailto:becky@beckyburghart;%20www.beckyburghart.com OR call me: 785) 640-8811
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Whether you are buying or selling property in and around Topeka, Ks. I will provide you with knowledge, expertise and tools for you to make smart and sensible real estate decisions.
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