Hello again. With all of the messy news out of Wall Street the past few days, and seemingly centered around fancy terms such as "credit default swaps" and "mortgage backed securities" - what does it mean for you?
I decided it was time for me to look at the numbers mid month, as I believe that the market now is far too volatile to check just once per month. What I saw is this:
Inventory in Cranford has risen from 83 homes for sale a month ago, to 91 homes for sale today
Sold listings between August 1 and August 18 numbered 13, while there have only been 4 closing since September 1st.
Not many homes have gone into attorney review in Cranford this month, which tells me there have been fewer accepted offers than is typically the case.
So..what do I think??? Well, I am not a psychic, nor am I a negative person, but I believe that while some of the slower activity can be attributed to seasonal adjustments with August being a slow month for listings going under contract, thus translating into less solds in September...I think prices in Cranford are still dropping gradually (as I reported in my last blog) and that inventory levels are now starting to rise again slightly.
So.....heres the practical suggestions for this type of market
Sellers: Don't panic, just listen to the market. You can still sell for fair market value, which is still likely 60% higher than your home was worth in the year 2001. You must, however be properly priced. If you are not getting offers and you are getting 10+ showings, it is time for a price adjustment of AT LEAST 4% if not more, so you can get ahead of the declining price trend. If you are getting low numbers of showings, I suggest at least an 8% price adjustment from your asking price. If you get an offer, try everything you can to get the buyer to a fair market value price, and make the transaction work, because it may be the best offer you will get if prices keep declining. You CAN still get a fair price, but it just won't be the price you could have gotten a year ago, or even 6-9 months ago.
Buyers: The sky is not falling, and you are unlikely to get a "steal" in Cranford still. This is not the same type of market as Florida, California, or Detroit, where prices are off their highs between 20% and 50% depending upon the area. Cranford is still very desireable, and our prices have gradually declined, not plummeted. If you buy today, the long term prospects are good for you, as you can get a nice home at a price well off it's highs of a few years back, and even if it declines a bit in the next year or so, history shows that the market will recover, and you will be glad you bought when you did, as long as you have plans to stay in the home for 3 years or longer. Also, you might still have to pay full asking price or above if the seller priced it right. Don't use the asking price as a starting point to "knock some off" unless your Realtor, and the numbers are showing you that they are overpriced. If you pay full asking price for a properly priced home in this market, I assure you that you are already getting a discount off what it would have been priced before.
Getting a Mortgage: while it is getting tougher for buyers to qualify for loans, for those of you who do qualify, the rates are GREAT right now. If you do have a good down payment, solid credit, and appropriate income to qualify this is a great opportunity.
Hope this is helpful. We are here to give you facts, and good consultation. Thanks for reading
Sean Carroll - Realtor, Sales Associate
"Team Carroll" of RE/MAX Classic Group
www.TeamCarrollNJ.com
