I hope you and yours had a wonderful Thanksgiving and that you’re gearing up for a festive Christmas and New Year’s.
Let’s dive in and take a look at what sold in Lochwood-proper in November of 2018. Overall, 7 home sales closed. Five of them were quite large, or larger than your average Lochwood home. All I mean when I say that is that their square footage was between 2700 and 3500 square feet. That's a lot of house!
Here is a summary of each home that sold in November.
Because the homes that sold were quite large, there was a jump in the year-over-year sale price from $373,000 in November 2017 to $510,000 this November. Inventory continued to hover near 3.5 percent, which is twice as much inventory as what we had last year. Still, days on market looked healthy and the number of closed sales was up. One item that I’ve added to the year-over-year summary table is the number of cancelled or expired listings. These are homes that failed to sell in the amount of time allotted in their listing agreement with the seller’s agent, or the seller’s decided to pull their home off the market. Sometimes cancelled listings are put back on the market at a different price. The point here is that there was an uptick in cancelled and expired listings last month compared to November 2017.
Last month I posted a blog on my website with a forecast for the 2019 real estate market. Not much has changed about the forecast, with the exception that interest rates have improved over the past couple of weeks because of losses and decline in the stock market. If that trend continues, and if the Fed is not impressed with job growth numbers, interest rates will hold or move lower. But if stocks trend higher and job growth comes in at or above analysts expectations, then rates will likely go higher. Higher interest rates and maxed out prices have made affordability an issue for home buyers.
So what is the take-away from this analysis? If rates stay low, I expect spring market to come early….like February. Why do I think this? Several reasons. First of all, most people are focused on family and the holidays once we hit Thanksgiving so they tend to delay their home search unless they absolutely have to secure something prior to year end. Secondly, January is typically a time of financial recovery after the holidays. Think about it, if you’ve over spent and over eaten in December, the last thing you want to do is go out and make a major purchase. That makes February the right time for buyers to start looking again. It also makes February the right time for anyone thinking of selling to put their house on the market.
I know we’re at a time of the year when we all have a lot on our plates: family, travel, getting the perfect gift for a loved one, parties, resolutions, goals, volunteer work, etc. But if you’ve been thinking of selling in 2019, let’s go ahead and have a conversation about that. Let’s make a plan so that you can budget for painting or staging, or budget your time for clearing out some items you’ve been wanting or needing to get rid of. Let’s get together and make a plan to maximize your profits from selling your home.
Oh, I almost forgot! Here’s a link to the photos and details for each of the Lochwood homes that sold in November.