With unit sales up at many price points going into end of the year, consumers and brokers are looking optimistically toward a newly developing positive trend. While prices are still falling, the bottom seems to be in site. At the national level prices are down almost 30% from their records of 2006 according to a recent article in USA quoting NAR.
At the local level we are seeing corrections, but not necessarily that severe, except in the luxury category. With that being said, there appears to be a significant improvement in unit sales in the luxury category throughout upstate NY. Sellers that are listening to the market and adjustng pricing strategies are moving properties at a faster pace. There was a time not too long ago when record sales where happening all the time, but in a recovering market the key is to find market value and show the consumers that you are realistic and informed, thus delivering the message that actually want to sell.
The most effective strategy to move premium real estate in this market is to put realistic pricing on the asset from the entry point into the market and then ensure you are utlizing a marketing program that can generate maximum available exposure. We are still in lendng market where interest rates are low, so it is vitally important to get the buyers to look at your home NOW and make an offer before the interest rates climb.
When viewing the monthly cost of owning a home, that difference of 1% in the interest rate can have a significant impact on the price a buyer is willing to pay, so if prices will fall a bit more and interest rates will likely raise soon, then the best time to sell for the highest possible price is right now.
So as we approach 2011, keep in mind that foreclsures are still pusing their way through the market and they, too, will have a negative impact on pricing, however moving this inventory will help to stimulate transactions.
At the local level, if the investments that have been made in local industry continue to create new jobs, then our local recovery could outpace the national trends in a positive way.