There is so little inventory this is getting ridiculously frustrating.
That's how I feel - SO. FRUSTRATED. And it is so much worse for the poor buyers, who are losing out multiple times in multiple offer situations. To all cash, no contingencies, $50,000 over asking.
Right now there are sixteen properties currently on the market in the William Fox E.S. District. SIXTEEN. That is it. Of those sixteen, seven are priced $650,000 or above. While the Fan District and the Museum District may be worse than other neighborhoods, the situation is not much better in the rest of the City and the close-in surrounding counties. [NOTE: I don't claim to know what the market looks like in Chesterfield, Hanover, Goochland or Powhatan, so this may not apply there]. My questions is this: Where are all the daggone sellers?
There are two (2) groups of people that, in my opinion, should seriously consider selling in this market. These people would be taking full advantage of this sellers' market, with the opportunity to purchase a replacement home at interest rates that are still excellent - about 4.5%, as we speak - but are projected to continue to rise. It is anticipated interest rates will reach 5% by the beginning of 2019.
So, who are these sellers?
1. Move Up Buyers
Move-up buyers are the people currently in the entry level or mid-range home, who would love to move up to a bigger home for various reasons - a growing family, a need for a place for an aging parent, the desire to purchase the dream home. If you are a move-up buyer, depending on where your current home is and where you want to go, you are likely to be selling in a strong sellers' market, and buying in a buyers' market.
For example, someone with a $400,000-$600,000 Fan or Museum District home to sell could sell their house in a hot minute, and there is much more inventory to choose from in the $600,000+ market, particularly if you are considering different neighborhoods. So, someone with a Fan home to sell ($500,000) who would like to move to the Fan, the Museum District, the near West End, or Ginter Park ($600,000+), is in the driver's seat, because the product you are selling is scarce, and the product you are looking to buy is at least if not oversupplied, in balanced supply.
Take this example and apply it to someone in, for example, Bellevue, who would like to move to Ginter Park. Or someone off Leonard Parkway in the near West End, who would like to move to the River Road corridor. All of you are in the hottest sellers' market in 10 years. There is no inventory in the entry level and mid-range. Take advantage.
2. Downsizers
Are you in a much larger house than you need? Do you want less to take care of? Do you want to spend all your time at another home, or traveling, or just not messing with yard work? Lots of Baby Boomers are living in a house with more square footage + more yard than they want or need. If you are one of those folks, why not take advantage of this market to downsize? Even if prices in your area aren't as red-hot as they are in some parts of the Greater Richmond area, you probably have a very strong equity position in your current home. If you sell first, you can take your proceeds and be very competitive on the buy side, by paying all cash, or making a very significant down payment. Perhaps you can buy a new property without selling, making you a more attractive buyer than someone that has to sell a home. Or perhaps you are buying a type of property - for example, a larger condominium in the City - that doesn't have as much competition as a single family home.
Conclusion
If you have considered selling, now or in a few years, why not take advantage of the current market to maximize the return on your current home? We know the market right now is strong, and interest rates are likely to go up, not down. Why wait? We don't know what 2019 and beyond will hold. We do know what the market looks like right now. So please, help me and my fellow real estate agents out. So we don't lose our minds. :) Thanks in advance.
- Melissa
Nest Realty Richmond
221 S. Robinson Street
Richmond, Virginia 23220
Cell: (804) 986-3993
Email: melissa@mikemelissa.com
URL: www.mikemelissa.com
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