Over the past month or so, many folks have been talking about the drop in local home sales and activity during the month of June.
Just as we have received an increased amount of questions about the housing market in our office, we thought it would be beneficial for Margie Stibora to answer some common questions that people have been asking recently.
What is your opinion on what is happening right now with our housing market? These are interesting times for our market. We are experiencing a lot of new and uncharted territory. The tax credits that just expired ($8,000 first time homebuyer and $6,500 repeat buyer credits) were unprecedented. Since we haven’t previously had any programs of that magnitude, we are all eagerly watching to see the residual effects. Many Realtors feel that the tax credits pushed many buyers into purchasing homes in the first few months of 2010, leaving now- the time shortly after their expiration- as a period of uncharacteristically slower activity.
Do you see correlations between the housing market and what is happening at TAMU? Definitely. In my opinion, the attitude surrounding the national economy has reached Bryan-College Station to some extent. The news of potential layoffs and budget cuts at A&M has caused many folks to cautiously watch and wait. Of course, people are going to be particularly guarded and conservative with their financial decisions in times of increased uncertainty. But with that being said, I still believe that we are incredibly fortunate to live in a college town. In spite of the current budget issues, Texas A&M provides a lot of stability through it’s consistent stream of students and faculty.
Historically, what have your experiences been with challenging housing markets? You always hear that the housing market fluctuates. Throughout all my years in real estate, I have experienced this phenomenon firsthand. Things go uphill, then they go down. Experiencing this multiple times has given me the trust and confidence to know that even when things are looking down, they will curve back around. In the 1980’s, times were really tough. At times, it felt like you couldn’t give a house away. People wanted to watch and wait. And eventually, confidence was restored and things really picked up again. When you’re in the middle of a recession like that, you have to adjust your approach and techniques, since the market requires different strategies than it did during more plentiful times.
What is your advice to people who need to sell their home right now? When the market gets challenging, you have to step up your game. As a seller, you are competing with a large inventory of homes for sale, so you need to make sure that your house is in the best possible shape. Make it stand out among your competition. Also, ensure that it is priced correctly. We are seeing that the houses that look their best and are priced correctly are still moving. Making sure that your Realtor is active in maximizing these two aspects of your home is crucial.
How much of a difference does a good Realtor make? I would say that especially in challenging times, an experienced and involved Realtor is extremely important. Ensure that they know the market up to the minute, as it is always changing. If they are on top of their game, they will be able to help you sell even when there is an oversupply of inventory.
What is your projection for our housing market? Anyone who knows me will vouch for the fact that I choose to remain optimistic. We can be thankful to be in a college town as we look for signs of economic improvement. As the old adage goes, “When the going gets tough, the tough get going.” I will continue to do everything in my power to sell homes while eagerly awaiting improvement in our local economy & housing market.
June 2010 MLS Stats for Bryan-College Station
Sales Closed: 286
Avg Sales Price: $165,920
Average Days on Market: 120
Sold Dollar Volume: $47,453,045
Total Number of New Listings: 422
If you currently have your home on the market, have you noticed any changes in activity? As recent budget information has come out from A&M, have you seen a change in people’s attitudes about our local economy and housing market? Come join the conversation!