Today in our series titled "Faith or fear: You Choose is now the best time to sell your house?" The Florida Tolbert Team at Keller Williams Realty of Lake Nona are going to address and define a shifting market.
In the real estate industry what’s considered a balanced market is when there are six months of inventory of actively listed houses on the market for sale. When it is over 6 months available, it is a BUYER market, and when less than 6 months, a seller controlled market.
As we’ve been having extremely low on available houses for the last 7+ years, this means that the available houses supply has been very low or less than six months sometimes as low as under 30 days.
When the inventory is less than six months on the market this is what we call a sellers market and this means that sellers are in more control of price they want, however still subject to fair market value of recent comparable sales nearby.
And when there are not enough houses on the market that’s when New Home Construction Homes For Sale steps up their production and fills the gap of what people are willing to purchase and what sellers are not willing to list with a realtor for sale.
And that has been the case for a number years now, however economic indicators are starting to say that times are now changing. Today’s we’re going to attach the latest report from Florida Association realtors showing that inventory is slowing that pending‘s are slowing that inventory is now sitting on the market longer in that New Home Construction Homes For Sale most importantly is slowly.
Now you ask why is that important that New Home Construction Homes For Sale is slowing production. Well many years ago, one of the top real estate minds in the country and respected by many, Gary Keller wrote a book that became a New York Times bestseller called "Shift."
And it was in this book that Gary Keller educated the world on exactly what is a "Shift" in the market. And you ask yourself what makes this one man an expert on a "Shift" in market.
Well it just so happens that Gary Keller co-founded and still actively runs Keller Williams Realty International and during the "Shift" in market or as some call "the worst real estate meltdown in real estate history" from 2007 through 2011, Gary’s company went from being the fourth largest real estate company in the country to the largest real estate company in the country all the while Keller Williams Realty grew 48% in size and value during this meltdown.
No you have to ask yourself why was Gary Keller able to grow Keller Williams Realty 48% during an economic time when other companies were closing their doors forever and going out of business?
The reason was very simple, Gary Keller predicted the shift many years in advance and Gary Keller trained and educated his agents to be prepared for the shift and to embrace the shift. He challenged his agents to change their mindset to master the upcoming issues and to understand how the market was going to shift and how to not only survive but thrive during the "Shift"
Well Gary Keller has been predicting for the last four years that 2018 was going to be the year of Real Estate "Shift" once again.
And one of the key indicators that Gary Keller wrote in his book was that the last indicator you would see was New Home Construction Homes For Sale pulling back on their new home starts because their homes are sitting on the market longer.
And one of the key reports that we received in June from the national Association of realtors and the national homebuilders Association stated that while some major markets are still performing extraordinary, in some markets, starts are down, future permits for New Home Construction Homes For Sale, inventory of homes are rising, and days on market are rising pointing towards once again that the market is shifting.
Now what does that mean for you Mr. seller who has been sitting on the fence waiting for the highest price for your house is this ; you’ve probably gotten very close to or reached this point. And at the same time, as the mortgage interest rates are continuing their climb and already predicted to rise again effecting the amount of new purchase price you can afford.
You see it’s a very simple economics if New Home Construction Homes For Sale has been blasting and new construction has been filling the need for homes when sellers would not sell their resale homes, do you really think the New Home Construction Homes For Sale would be slowing down their new construction and slowing down on purchasing permits for new construction to start if they did not feel that the buyers were coming to a slowdown?
Now we fast forward this a little bit and what happens when New Home Construction Homes For Sale is lowering their prices on their existing inventory of New Home Construction Homes For Sale?
The answer is simple the buyers who were on the fence of buying any homes that may or may not be on the market currently are going to rush in and buy up those last New Home Construction Homes For Sale that are available on the market right now.
And why is that you think? Because they’re going to go out and grab what’s exactly in front of their face to fill their demand for a new home right now and if yours is not on the market with a professional realtor where they can find it, see it, feel it, and touch it without very much effort. they’re not going be driving around the neighborhood looking for the for sale by owner signs. They’re going to be going with a realtor who knows exactly what is on the market today whether it be an existing home or a New Home Construction Homes For Sale.
You see there are three types of buyers in today’s market; there is the person who is going to be homeless in the next 30 days because they’re relocating or they need to be in the house because their rentals lease is ending or they just moved here and they need to move in now or they just sold and they need a home now. Do you think that Buyer is going to be driving around neighborhoods looking for For Sale By Owner signs? No, they are calling The Florida Tolbert Team at Keller Williams Realty of Lake Nona because we have access to EVERY HOME on the market, and every New Home Construction Homes For Sale that they can preview from the one stop convenience of our office and narrow their selections down to a very managable list of houses to see in order to make a fast decision.
HOW MUCH YOUR HOUSE IS WORTH NOW.
Then there a class B buyers and those are buyers that may be in process that maybe getting a mortgage that maybe getting credit repair and they know that is soon as they accomplish whatever it is they’re doing they’re ready to buy.
And then there’s the C class buyer and those are the folks that will come to the neighborhoods and look for the FSBOs they will drive around aimlessly on the weekends looking for houses and going to open houses and have absolutely no intention of buying anything unless it is a world-class giveaway bargain and the only reason they will come to a for sale by owner is because they think that they can negotiate that for sale by owner lower and the truth is the facts prove over and over again that for sale by owners 96% of the time get less money for their house then local real estate expert would’ve sold it for because a Real Estate Professional knows what the home is truly worth and if they are like the agents of The Florida Tolbert Team at Keller Williams Realty of Lake Nona, we get our sellers 99.8% of the asking price thus putting more money in the sellers pocket than most realtors in the Orlando Market who average only 96% of the list price for their sellers.
So right now the economic indicators are becoming clearer and clearer that we are about to start another in this market back from a low days on market sellers to longer days on market, home sitting on the market, and toward a buyers market and what this means for you do you the seller is you’re going to have more people demanding more from you Mr. Mrs. seller in order to sell your house. They are going to look for repairs, upgrades, closing costs, and more as the demand gets lower for your house.
You see in a sellers market you may have multiple people bidding on your home and just like in eBay when you put an item up for auction and 100 people are bidding on it, the odds are the prices going to go up, however in a Buyer market, You have fewer buyers making more Demands and having higher expectations of the seller in order to purchase their house and they will offer lower prices which will start to bring down the price of home sales.
Now while Orlando’s market is still warm and prices moderately rose in June they did not rise as much as they have year over year for the last seven years and this is the third month of declining average sales prices, pending sales, and new home starts. Every economic indicator is clear that our market is starting to soften for the sellers.
The great news for you is there are real estate professionals like The Florida Tolbert Team at Keller Williams Realty of Lake Nona who study this market, who listen to genius like Gary Keller and who digest and understand these market changes as they happen so they can share them with their sellers and make them the most educated sellers in the neighborhoods. It is with this knowledge comes power and the power to get you the highest prices and most neighborhoods that The Florida Tolbert Team at Keller Williams Realty of Lake Nona has ever serviced over and over and over again it is the listing on marketing specialist known as the listing agent that truly drives the marketing of your home in order to get you the most desired outcome for yourself And your family.
If the time for you to sell your house has always for highest price,then you need to call The Florida Tolbert Team at Keller Williams Realty of Lake Nona today and let us meet with you and discuss with you the market data in your particular neighborhood because real estate is very neighborhood specific and we will let you know and share with you all the facts all the data and decide together how to get the most money out of your house and get into another house before those opportunities are gone.
Many of you may have heard already that the Federal Reserve is planning on raising interest rates continuously the rest of the year until they don’t feel that the real estate market can tolerate it anymore.
And any consumer understands that with Higher interest-rate’s comes Less home that you can afford to purchase because your payment keeps going up with every interest rate increase so a $200,000 house can quickly Cost the same payment as it $180,000 house with just a quarter point interest-rate jump. And again having this knowledge is power it empowers you to consumer to know that now is the time to make the decision to purchase While you can Purchase the most home for the least amount of money in the least amount of payment.
We at The Florida Tolbert Team at Keller Williams Realty of Lake Nona are members of a full-service real estate team partnering with a team of mortgage specialist, multiple teams of home inspectors, team of buyer specialists, and a team of listing specialists and we are here to help you list your current home and help you purchase your new home and we specialize in new construction knowing every single home it’s on the market daily our builders contact us and let us know day by day what’s available what incentives they want to pay you if you shop with a realtor like us, and the great news is we will not charge you to be your professional buyers agent your professional to go help you secure the best price for your new home the most amount of options for the least money.
And for the month of August and September for any new home construction purchased that you called us the Florida Tober team to help you purchase you will receive a free independent professional home inspection of that brand new home so that you can buy with confidence knowing that home is the perfect home in perfect condition and perfectly completed condition for you and your family for years to come.
We have helped Buyers this year get anywhere from 5% to 25% off the list price for a home that they purchased while the average Agent in Central Florida has helped their buyers purchase at approximately 98% list price to sell price. So you have to ask yourself do you want this bulldog for a negotiator who is saved his buyers as much is nearly $200,000 off of an $800,000 home this year or do you want the average agent who get you want to 2% off the list price?
And again just to be clear you do not have to pay for our services when we represent you as a buyers agent to negotiate on your behalf against the seller or builder.
So now that the facts of been laid before you, The only thing left for you to do is call The Florida Tolbert Team at Keller Williams Realty of Lake Nona today at 772-834-0099 and set up your no obligation buyer consultation so we can get you started on the path to homeownership before the interest rates rise the payments rise in the home that you can afford today you and may not be able to afford in 60 days.