The biggest question I get every day, how’s the real estate market?
Well we hear nationally the housing market is in for a correction, slow down, recession, whatever you want to call it. No one knows if there will be and to what severity. The idea comes from such a sharp increase in property values, the market cannot “sustain such values”.
But the real short story is property values are still strong. Not quite as strong as a year ago, though. In fact since last summer, the inventory has fallen even more than last year. Which is the biggest factor affecting Ocean City’s market. Luckily there are ALWAYS buyers. Some looking to own in OC for the first time or those looking for a beachfront they can own for multiple generations and everything in between.
Now on the flip side, interest rates rose this year as well to combat inflation. (How’s that working out for everyone? Wait! Don’t answer that.) But in all seriousness, it did deter a few buyers. So the demand has also dropped. But remember when I said there are ALWAYS buyers in Ocean City. Because there are still buyers scooping up whatever they can, the inventory issues have only gotten worse.
And if you know anything about macro economics:
Our current market is at the light blue circle:
~Quantity or inventory is very low (horizontal axis)
~demand is not the highest but still very high (diagonal D line)
***When quantity is is low, demand is high, price and property values move up.
Now that you graduated from Matt’s Basic Economics 101, you know exactly how and why we are where we are. Spring is notoriously a very strong buyer and seller season. So buyers will be showing up in droves but we’ll see if seller’s are interested in taking advantage and selling. Only time will tell!
But my speculation tells me shore homes will still be in high demand because very few homeowners wish to sell but buyers are always out there. I think this same trend will continue this year.
So my advice to any seller’s, call me for a market analysis to get your home listed correctly the FIRST time. You want to list in a way you’ll bring multiple buyers. If you list too high, you may end up waiting too long to sell and miss out on the opportunity in front of you(high property values). There are still a handful of homes that I met with back in the fall and recommended they list at one price but they hired another agent because they gave a higher non-realistic price. Well, they’re all still on the market. And the peak of this housing bubble ended this past late summer and fall. Right when the interest rate hike hit. Lesson #1 – meet with multiple real estate agents when deciding to list, but do your own homework. Some agents will tell you a higher price so they get the listing. Don’t shoot the agent who tells you the truth. Because they are the ones you want on your side. Lesson #2 – choose an agent that will answer your phone calls(before you tell them you want to sell)! In today’s world it is very easy to text and get back to each other whenever. But when it comes to your home on the market things happen very quickly. Hire an agent who is ready to answer the phone to show your home on a seconds notice. My favorite are those who never answer their phone and their voicemail actually tells you to text them. Talk about personal touch. Makes you all warm and fuzzy. When someone wants to see your home last minute, I guarantee the texting agent isn’t getting back to them fast enough and you just lost a showing/potential buyer.
As for buyers, get your ducks in a row first. Decide on your budget and where you want to be. Next, get pre-approved with a mortgage company. Need a recommendation, I have three for you. Shop around for the best rate and most responsive team. Once you know your budget, location with pre-approval in hand, you are ready to start shopping. But because the buyers outweigh the sellers, be prepared to move quickly. Properties will be selling in 7-15 days. Do not wait two weeks to see a well priced home that just came to the market. Chances are by the time you make the showing appointment, you’ll be met with, “it’s under contract”. Although, you should never feel pressured to submit an offer, if you want the home, you should be prepared to make decisions quickly. And after all, offers are just offers. Never hurts to take the first step because you have the next mile to change your mind.
SO what did we learn today?
1. When supply/inventory is down, demand naturally goes up. When both are true, price will also increase.
2. Spring is a great buying and selling season to be prepared for in advance. Get everyone on the same page for budget and location. Then get pre-approved. This way you are prepared to jump on the right property once it hits the market.
3. Sellers, interview multiple agents and find someone who will actually answer your calls.
As for the future! I’ll leave it to magic 8-ball…”cannot predict now”.
If you or anyone you know is looking to buy or sell in and around Ocean City, I welcome your referral and I’ll treat them like family. Feel free to CALL or text me with any of your real estate needs.
Have a great day!