Healthy Real Estate market requires participation - Steve Arrington - Remax Traditions

Healthy Real Estate market requires participation

Healthy Real Estate market requires participation

According to Investopedia…and or countless other sources who claim credit for this synopsis…the indicators for a healthy Real Estate market…or any trading market that is include…

1. Pricing and Affordibility
2. Foreclosures
3. Payment delinquencies and underwater homeowners
4. Inventory
5. Investors
6. pending home sales

So in our examination of how to create and or maintain a healthy local market lets take a look at these factors:

Affordable price for the product…or in Real Estate how much do I have to spend in order to get the animal I want or “need”…thus if there is an audience at a certain price point for a product this is what is referred to as demand…there seems to be great demand for Colorado right now and Longmont is playing it’s part both for desire and affordability…more buyers want and need more sellers…again trading in this market is really no different than trading in markets past…

Foreclosures…foreclosures are low now in this are mainly because of the increase in value so there are not as many distressed sales that can effect the overall values…and the “fix and flip” concept seems to correct any distressed sale data…another factor is the idea of selling the property before losing it…more of these people can get involved in the market…

Payment delinquencies and underwater homeowners…same concept as foreclosures…less people get in trouble because they can simply sell it prior to losing it…that is why there are hardly any “short sales” anymore…remember that no bank “wants” to take the property back…Colorado changed the foreclosure procedure and the Obama administration went to great lengths to strengthen the homeowners options to avoid the banks having to foreclose…a lot of these stories ended in a loan modification or a sale prior to trouble…or they have moved down and or restructured the debt to be more within the means…

Inventory…this is the key to the healthy market concept…this also tied to one of the other indicators which is pending home sales…the ideal scenario according the “experts” is having about six months worth of inventory for sale at any given time…that is if no places came up for sale beginning today all the existing inventory would sell out within six months…right now there is about 75 homes for sale in Longmont…and with the average days on the market less than 60 days to get a contract it would take obviously less than six months to sell out…without inventory the balance simply is not balanced…their has to reasonable supply to counteract demand…it really is the same whether the market is going up or down…if you sell for higher and you buy for higher…you sell for lower you buy for lower…so in either scenario one is really in the same boat…thus one should not be bashful about trading in these market conditions…if the desire or need to move is there and you have the means to accomplish that then it can be accomplished…”when the student is ready the teacher will appear”…

Investors…they play a role in the urban renewal of all areas…the fix and flippers can upgrade an entire area within time with not only counteracting the lowered values of distressed sales but actually raising the values with a more desired “upgraded” product…

Pending home sales…they should reasonably consistent with inventory…right now there are close to 200 pending sales in Longmont…more than twice the existing inventory…the first quarter of 2016 was lower in homes sold than the first quarter of 2015…mainly because of lack of inventory…the demand may be there and could help drive prices up but without inventory there is nothing…and the concept of asking too much influences the affordability to the negative…in order to create a continuing healthy market we all must do our part…that is if you desire to move then let’s get a plan and do it…

THE MARKET NEEDS YOUR PARTICIPATION!IMG_4885