Monthly Value Message – Dec 18

Critical Data and Rates

The Numbers – What to Look for in 2019?

I will provide a full recap of our local 2018 Real Estate Market in next months issue.

What will the 2019 Market look like?

I will be focused on month to month inventory levels. As we have reviewed throughout the last couple of years, our local market has experienced elevated Demand Rates. Yet, as we witnessed, those elevated demand rates have primarily been achieved through lower inventory levels (fewer homes on the market) and not a significant increase in the total number of home sales.

In essence, similar numbers of buyers year over year, competing for fewer homes for sale(sellers).

The biggest question for 2019…..Will this trend continue?

If so, I expect similar market conditions to the last few years.

If the inventory of homes for sale increases(as it is in the 20 largest national markets) then we could see a reduction in Demand Rates. This would lead to an increase in Days on Market and some downward pressure on prices.

For Active sellers and buyers in 2019….monitoring these market directions can make all the difference in your results. Timing, as always will be key in all decision making.

Does Size (of market) Matter?

Yes, when it comes to expectations and goal setting…Size Does Matter.

A buyer is looking for a new home in the State College Area School District.

Their criteria is…. a 4 Bedroom, 2 story home no more than 20 years old, priced up to $400,000.

The total number of closed transactions (home sales) in the first 11 months of the year (as reported by the Centre County Assoc of Realtor MLS), that met this criteria
was 35. That is approx 3 homes per month, that could be candidates.

Going into the home buying process without that “context” is unprofessional and can lead to lost opportunity, stress and costly mistakes.

A seller with a property for sale with the same specifications as above.

35 Total home sales year to date. Approx 3 similar homes selling per month.

Upon placing their home on the market, the seller receives 7 to 10 showings (buyers touring the home) in the first 14 days. No offers are submitted.

There is a single, primary indicated action this data conveys…. institute a price adjustment.

There is no clear action to take without knowing the overall size of the market for your home. Once we determine that
piece of the puzzle…the path to timely success becomes clear.

The data is my job. It is similar to the X-ray results or Lab results your Doctor uses to make recommendations to keep you alive and healthy.

Are Realtors Co Workers?

No, Realtors are not coworkers. Each Realtor is an Independent Contractor.

I have worked at Re/Max Centre Realty for over 20 years. Many of the agents in the office I consider friends and good people. That said….we have absolutely nothing to do with each other from a business standpoint.

We are not coworkers. We are each running our own individual businesses, with our own individual mindsets, experiences, priorities, etc. We “hang our State of Pa, Real Estate Salesperson License” at this particular Independently owned and operated Re/Max franchise.

Not 1 single agent at my office or any other office in the area has any knowledge of you or your property other than what we choose to share. And I have no information or knowledge about any other Realtors client, beyond what that agent is willing to share with me.

In essence…each agent is his/her own little “mom and pop” store.

This Month’s Prize Draw Winners

This months winners will each receive a $25 gift card to the Premiere Theatre.

• Richard Perini
• Brenton Joo Mitchell
• Deb Young
• Lisa Blasi

Next Month’s Prize

2 Winners will each receive a $50 Gift Card to Starbucks.

To enter the prize draw, you need to join my newsletter (bottom of the page) and then simply reply to the Monthly Value Message email that is sent.

“I could agree with you, but then we’d both be wrong.”

– Harvey Specter

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