Jim Valentine: Tweener timing perspective
We are now into the new year, past the shortest day of the year, and headed for spring. Wait! We haven’t even had any good storms yet! While we hope to get some with good moisture content to recharge our water supply the reality is that it won’t be long and the days will be long, the daffodils blooming, birds chirping and building nests and all of the other rights of spring.
One common spring activity is the listing of homes by people who have waited through winter to come on the market. Delayed market entry reasons vary from not wanting to move in winter to letting the kids finish the school year to thinking that there aren’t any buyers out there right now. The personal reasons are certainly valid and should be honored, but don’t let yourself get caught up in the myth of waiting until spring because of the lack of buyers.
The Northern Nevada real estate market continues to be very brisk. Interest rates are exceptionally low, so low in fact that the expectation of them falling further is questionable. If they should happen to rise, prices could be affected in a manner adverse to the interest of a seller. Another pricing factor for consideration in 2020 is that it is a presidential election year. Combine that with actual, very current events and we could see people concerned about the economy — right or wrong, they might be.
In every area of Northern Nevada, builders and developers are working diligently to serve the pent-up demand created during the recession years when no new subdivisions and very few homes were being created or built. Numerous subdivisions are being submitted for approval, and many homes are now under construction. They are creating competition in the market that currently isn’t there.
Northern Nevada usually sustains its sales volume in winter months. What falls off is the number of showings. There are fewer buyers looking, but those that are out and about are serious. Remember, our market is substantially driven by California refugees. They are not impacted by winter weather other than maybe being slowed getting over the pass to look at a new listing. Their homes are continuing to sell and they have a need to find a home to move into. They are looking at today’s market, not April’s potential market.
If everyone is waiting until April to list at a higher price, what will happen in April? The listings will come on the market and it will shift to a buyer’s market. It is doubtful that you will gain much by waiting to list while the risks of waiting present myriad possible negative seller impacts. When possible, it is always best to control your own destiny. You can list today in a known good market, sell and be on your way long before you would even be putting the sign and lockbox on the property in the spring.
Our advice: Don’t try to second-guess the market. If you are worried about the “Days on Market” component — don’t. Being on the market longer doesn’t diminish your value; it only gives super sleuth buyers who read too much online the idea that they can make a low offer. If they want your house, they will come around to the reality of what it is worth … or somebody else will buy it. If you price it right in this market, it will sell without major discounting. This “tweener” market is a good one, and you should feel comfortable and confident bringing your home on the market now without waiting four months. That is four months of extra carrying costs, delay of your moving plans and opportunity for negative market influences to materialize.
Focus on your wants and needs and make plans accordingly. If you want to sell, then list and sell. If you try to time the market, understand that it is like catching the proverbial falling knife. You might get lucky or …! Control your destiny and enjoy the benefits of this in-between market.
When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. firstname.lastname@example.org