The short answer, Yes. The real estate market seems to be improving. The inventory of homes on the market is down which could mean a possible stabilization. Currently, Orange and Seminole county have between 4-5 months of inventory on the market. Another indication of improvement are the multiple offers that seem to be coming back with force!
Although improvement seems to be on the horizon, keep in mind, the prices are still down. But when a great home comes on the market at a good price, multiple offers could ensue. I recently put two homes under contract within one week of listing them. Both went under contract for near the asking price and one received multiple offers. Multiple offers are becoming more common, and buyers are willing to offer quite a bit more than asking price when up against other buyers, anywhere from a few hundred dollars to some instances up to $20,000 above asking. Offering $20,000 above asking price is extreme, but it goes to show that a good property combined with lack of inventory can make this scenario possible.
Down inventory and multiple offers does not mean we will see massive amounts of appreciation. But if a stabilization is on the horizon, I think everyone that purchased within the past 10 years (as prices are near 2002 levels) will start to breathe a little sigh of relief.
Here’s what you can keep in mind and try to digest from today’s blog:
1. While inventory is down, that’s the time to capitalize on the buyers in the market. If you’re considering selling in the next 3-6 months, now is the time to get your home on the market.
2. If we do begin to stabilize and start to see a glimmer of appreciation, we will likely see a normal and conservative 3% appreciation per year, after the market has stabilized and home value decline has stopped.
3. What are you waiting for? Get off the fence and contact me today…I’m more than happy to have a casual conversation about what you can expect when buying or selling in today’s market.