So How's the Market?

photo courtesy of www.cloud9living.com



So the question always comes up......"So how's the market"?  And it seems like it usually comes up at a cocktail party when I may have had one too many!  That is the joy of being a real estate agent.  No one ever goes up to the insurance salesman (no offense to anyone in the insurance business) and asks them "so what sorts of new policies have you written lately"?  There are a hundred different ways you can answer this question.  I usually stick with a somewhat short answer so I don't trap someone who is just being friendly and doesn't want the 20 minute spill.

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The answer is that it is good........and bad. Confused yet?  Well, its good because the average sales price of a home in Fayetteville increased over the last year.  In fact the average sales price has increased every year since 2001 .  This is a positive thing for most homeowners in Fayetteville because more than likely your home has either maintained value or gone up in value. There are some small exceptions to this.  Over a 10 year span the average sales price in Fayetteville has increased 52%! This is definitely not the case across the country where many people owe much more on their home than it is worth.  The market is also good because it is a great time to buy a home.  Although interest rates have gone up recently they are still below 5%.  This is incredible!  We are also in a buyers market meaning typically the buyer may have the upper hand in negotiating because there is a larger than normal inventory of homes on the market and sellers may be having a tougher time selling their home.
The market is not so good because for the 4th consecutive year the number of homes that have sold in Fayetteville has decreased.  But on a positive note there has been a 52% increase of number of homes sold since 2001.  It typically takes longer to sell a home which makes it more important than ever to have your home priced right and present itself well when you are selling it. The decline in home sales is due to many factors.  First, because Fayetteville has a large military influence we are a transient city.  Many people moving to Fayetteville are forced to rent because they are unable to sell the home in the city they are coming from.  The overall economy definitely has an effect as well.  Many peoples salaries are accelerating at a slower rate so they are unable to afford more expensive homes therefore they stay where they are. And because of the mortgage crisis people are only given loans that banks think they can pay back. Imagine that.  Most 100% financing has been done away with and the buyer is now having to put down between 3.5% and 5% as a down payment.

Overall I have a positive view of our market and am optimistic of where it is going.  I definitely think that it is a great time to buy a home. 

photo courtesy of www.cimarronalliance.org