Four Columns Realty Blog

As Time Goes By: 2005 vs. 2009

Remember 2005? The real estate boom was fated to go on forever. But fate had other plans.

Four Columns Realty offers readers of Orange MA Real Estate 10 ways to understand what's hot and what's not in today's real estate market:

1. Trophy McMansions are so 2005. Letting the Jones keep up with themselves is 2009.

2. Buying a home to flip is so 2005. Buying a home to live in for years is 2009.

3. Overpaying for a ritzy address is so 2005. Finding bargain tech-friendly communities with improving schools is 2009.

4. Excessive extras are so 2005.  Simple comforts are 2009.

5. "No cash, no credit, no problem" is so 2005. Choosing a home you can afford is 2009.

6. "So what if we're buying high, the market will catch up" is so 2005. Buying smart is 2009.

7. "Let's inflate our asking price and see if there's still a sucker out there" is so 2005. Pricing a listing right on Day One is 2009.

8. Rooms full of wasted space are so 2005. Energy efficiency is 2009.

9. Multiple vacation homes are so 2005. Living where you can be happy staying home for vacation is 2009.

10. Smiling through it all is so 2005. Smiling through it all is 2009, too. Some things never change.

Why It's a Buyer's Market

As we approach the end of October, there are 340 single-family homes on the market in the North Quabbin Region, which includes Athol, Erving, New Salem, Orange, Petersham, Phillipston, Royalston, Warwick and Wendell.

These 340 homes have been on the market for an average of 223 days.

The 340 homes for sale in Athol, Orange and the surrounding towns are close to a 21st century high for this date.

The average of 223 days on the market is a clear 21st century high in our region on this date.

That's the supply side. What about demand?

From January 1, 2008 through October 22, 2008, 173 single-family homes in the North Quabbin Region were sold through the MLS. (This number does not include private real estate sales, such as family transactions or for-sale-by owner homes.)

These 173 homes sold in Athol, Orange and the surrounding towns took an average of 191 days to sell.

On average, these 173 homes took twice as long to sell as the 439 homes sold in Athol, Orange and the same surrounding towns in 2004.

If the current rate of sales continues, 2008 will see less homes sold in the North Quabbin Region than in any other year of the 21st century.

Also, if the current rate of sales continues, buyers would take over a year and a half to go through the current inventory of Athol-Orange area homes for sale... even if not a single new listing were to come on the market.

That's slow demand. And with the economy faltering and lenders tightening up, demand is likely to stay slow.

A high supply of homes for sale + a slow demand for homes = a buyer's market. That's how the law of supply and demand applies to real estate.

We are not alone. The buyer's market in Athol MA real estate and Orange MA real estate resembles the real estate buyer's market across most of the USA.

Today, in Athol, in Orange and everywhere, it's important for home buyers and home sellers to be realistic. With unsold homes in high supply and demand reduced by economic stress, the buyer's market is likely to stay with us for a long while.

Note: Four Columns Realty calculated the North Quabbin Region statistics in this post based on information supplied to and compiled by the MLS Property Information Network, Inc., for the periods of time indicated.

You Never Get a Second Chance to Make a First Impression

Deb and I watched the countdown of The 25 Biggest Real Estate Mistakes on HGTV a few nights ago. According to the show, the #1 mistake that home buyers and home sellers make is "failing to showcase your home and make small cosmetic changes".

That's it? Small cosmetic changes? Numero Uno?

Yep, those small cosmetic changes make a big difference. And that's just as true for sellers of Athol and Orange real estate as it is for sellers of homes featured on nationwide TV.

When you show your house, you never get a second chance to make a first impression. That's a key point for real estate sellers to remember. It's also the title of a short report that real estate sellers can request from Four Columns Realty.

If you're interested in learning more about how to showcase your home, please contact Four Columns Realty.

Pricing Is King

 

On our companion site, Athol Real Estate, we celebrated Launch Day with a post entitled Under Contract in 11 Days.

Excerpt:

The takeaway for sellers: Only sellers who price their property competitively can succeed in today's real estate market.

The takeaway for buyers: If you see a home that's priced right, jump on it. Even in today's market, if it's a good deal, it may be gone soon.

Like in 11 days.

Read the Whole Thing.