Year in Review for the BCS Housing Market

December 8, 2010

2010 was a challenging year in real estate. Realtors in BCS definitely felt the hit of a weaker economy. Total sales have been down compared to past years, but all are hoping for a steady recovery. Here’s an interview with Margie Stibora, who gives an interesting recap of this past year in Bryan-College Station real estate.

Summarize what happened in 2010.
This year got off to a strong start. The $8,000 first time homebuyer credit was in place and many folks were looking for a home while the credit was still available. Outside of first time buyers, we had quite a few repeat buyers who were “upgrading”- selling their previous homes and purchasing new ones. The summer hit and sales dropped drastically.

Did you have any indication that sales would plummet over the summer?
I knew we would likely see a slow down in sales after the expiration of the tax credits, but I couldn’t predict its severity. After 33 years in this business, I have learned that 1) the market constantly goes up and down, and 2) you have to remain optimistic and work your hardest with the conditions you are dealt. I think many realtors were looking over their shoulder at the rest of the country as it went through the real estate slump, wondering when (and how severely) we would feel the effects of it here in BCS. Had the tax credit not been in place earlier, I think we would have gradually gotten to the place we are now, which may have felt less alarming.

Does this particular market remind you of any years past?
It feels very similar to the market we had in the mid-1980’s. Lots of houses on the market, realtors aren’t as busy, and the market is just…slow. The recovery from that market was gradual and steady, but it carried us into a strong market.

How far reaching was the 1st time homebuyer credit among prospective buyers?
I think the 1st time homebuyer credit may have encouraged buyers to move up their purchasing window by 6-12 months. That’s an approximate guess based on the buyers I worked with while the credit was still in place. I am hopeful that the further we get from the expiration of the credits, the more new buyers we will begin to see.

What about repeat and investment property buyers?
These types of buyers are still buying, although I’ve seen a slight decrease in number. For those people who are comfortable with their job stability and financial situation, the low interest rates provide a good incentive to buy right now.

Are most of your sellers choosing to sell or are their circumstances requiring it?
There are exceptions, but the majority of my recent clients have been selling out of necessity rather than choice.

Outside of the tax credit, what other factors do you feel attributed to the slowdown?
The national slowdown has stirred up fears among everyone to some extent. Also, all of the budget reduction news coming out of A&M this summer stirred up a lot of concern. When people are uncertain about their personal finances as well as the greater financial climate, they are naturally going to be more guarded in their investment decisions.

How has this market affected sellers?
Fewer showings, fewer offers. Houses have to be priced competitively since there are so many more homes on the market. Houses have to be in great shape. In stronger markets, staging and updates weren’t required to sell a house. They helped get more money for the home, but it wasn’t always required to get the house sold. That has changed in this market.

So in today’s market, updates and improvements aren’t giving sellers as much return as they have in recent years?
As a general rule, I would say that updates are no longer considered an “extra.” When there are several similar homes in one area and fewer buyers looking, the buyer will want the updated home with the comparable price for the neighborhood. Sellers are then competing with each other for the smaller pool of buyers, minimizing the return that they’ve invested in updates and improvements for the sake of getting their house sold.

How has this market affected buyers?
Buyers know they are in the driver’s seat. Buyers have the advantage of fantastic interest rates and ample homes to choose from.

Are there any other changes you’ve seen among your clients?
One interesting change has been the increase in knowledge about staging & presentation among my clients. Because of the popularity of home-related channels like HGTV, many sellers are aware of the importance of staging their home. In years past, people would sometimes be offended with my recommendations to clean, paint, update, and pack excess items in storage- now many clients take the initiative to start these changes.

What is the biggest challenge for you personally in a difficult market like this?
The greatest and most fulfilling component of my job is the opportunity I have to help people on a daily basis. I do this by giving clients great service and doing all I can to get the positive results they want from the sale of their home. So when the market is not as strong and houses are not moving as quickly, I work in close communication with my sellers to ensure that we are doing all we can in a weaker market. It is more of a challenge to get those great results in these conditions, but I am determined to continue to give my best to my clients.

What’s the silver lining?
Interest rates. They are hovering around 4% right now. We’ve even seen them dip below 4%. Those are fantastic rates.

What is your prediction for 2011?
I am hopeful that we will start to see some improvement with the advent of 2011. No one can say for sure, but my hunch tells me that things are going to start picking up. I do think it will be gradual, but I am optimistic that it will be a steady climb into more secure and prosperous market for us all. We’ll start to get a good indication of where we are heading once spring arrives. In the mean time, you can guess what I’m putting on my wish list for 2011

If you or someone you know bought or sold this year, what was your/their experience with our market?

Join in the conversation and discuss this topic with the MyBCS community.

This entry was posted on Wednesday, December 8th, 2010 at 2:05 pm and is filed under Blogpost, Bryan College Station Real Estate, Housing Market, News.
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