Our market is changing! Here are our observations so far in the early stages of spring:
1. Interest rates are at record lows. As of the date we write this, we are seeing rates as low as 3.62% on a 30-year fixed mortgage, and 2.6% on a 15-year fixed mortgage. These rates are driving market activity by keeping buyers actively engaged in seeking a home.
2. Inventory is incredibly low. It’s atypical for this time of year. This is a prime opportunity for sellers who previously struggled to get their home sold. The competition is much lighter. A number of variables may be contributors to this fact:
a) People are refinancing, and enjoying the low rates in their current home.
b) Foreclosure inventory is significantly down, as much of it has been absorbed by the market.
c) Some who bought at the peak of the market still carry a mortgage balance higher than the current market value of the home, and so are electing to remain in their existing home until they see a notable change in their equity position. Fortunately, we are beginning to see this gap begin to lessen considerably.
3. Pricing is inching upwards, and homeowners are bolder in their pricing strategies. With fewer homes to choose from, a new turnkey listing that is well-presented is a magnet for buyers hungry for new inventory. With that knowledge in hand, some sellers are taking bolder initiatives in regards to pricing strategies. It is important, however, that pricing remains in the ballpark. 
4. Multiple offers continue. Last fall we reported in our market updates to our clients that multiple offers were increasingly common, and this was particularly true with foreclosure inventory. We are seeing that trend continue with traditional homes this spring, almost entirely due to low inventory levels.
5. Appraisals are getting better. We just went through a difficult year of conservative appraisals in 2012, and now that home sales are picking up, we are seeing improvements in the ability to get a home to appraise for the value agreed upon by buyer and seller.
6. The use of temporary housing is more prevalent than ever. Sellers want to take advantage of the low interest rates and the low inventory (both of which attract buyers) to get their home sold. And they want to take their time finding their next home. Of course, this requires a “double move,” but many sellers view this as a minor inconvenience that offers them the flexibility they need to find a new home without having to rush.
7. Market times are going down. Again, this can be attributed to lower levels of competition.
8. Radon is a hot button right now. And it’s getting hotter. Now more than ever, radon tests are being done as a part of a buyer’s home inspection. Our state government is discussing making radon testing and mitigation a requirement of sellers before they can list their homes for sale. While the jury is still out on that, we do know that we are seeing high radon levels come back on at least half of the properties in the south metro. And radon mitigation is increasingly common during inspection negotiations.
9. We are receiving calls from property owners who just received their property tax statements, questioning the market value of their property as cited on their property tax statement. We are not seeing a lot of consistency between market values and assessed values. Several years ago, homes in the area were selling for considerably below assessed value. We are seeing the opposite occur in most cases at this time.
If we can answer any questions for you as we move into spring, please call, text or email us. We'd love to help.
Chad & Sara
