As the early spring market is underway, we're already seeing some significant changes from last year. The early 2013 market could be described as more "crazed," and buyers were very active, even in January/February. Sellers were listing early in the year to take advantage of the historically low interest rates that were luring buyers into the market. This year we are seeing a slightly more subdued early spring market, with sellers researching pricing and doing prep work, but waiting to go on the market until the relentless subzero temperatures improve. (We should be in the clear by March.) The number of sales in West Savage in February 2013 was double the number of sales of this month. We expect that gap to decrease rapidly in the next month or two.
A key part of every real estate transaction is the loan. The competence of the lender is a critical component, and much of the lending process is beyond the control of the seller's side of the transaction. When working with buyers, we recommend they use a reputable lender - preferably one they can engage with face to face. When working with a seller and reviewing the terms of a buyer's purchase agreement, we take the time to speak to the lender to get a better feel for the qualifications of the buyer's ability to close. We are hearing stories from industry colleagues about part-time lenders not getting the loan done and/or missing critical loan commitment dates, outdated preapprovals, and (if you can believe this…) offers being accepted prior to a preapproval being issued, with both parties to the transaction learning the buyer was never qualified to begin with. While no loan is guaranteed to close (the buyer's life circumstances may inadvertently change through the transaction,) there are steps that can be taken to illuminate any potential red flags a seller can expect to encounter in the transaction.
This month, both single family and townhome inventory in Savage decreased, and single family inventory in Scott County (as a whole) increased. Our West Savage absorption rate is 3.0. That means if zero new homes come on the market, it will take 3 months to sell our existing inventory.