A Look at the Local Real Estate Market

This  column offers straight talk and practical information about the home selling process so that you can be a smart seller — in any market.

 If you’re buying a house today, conventional wisdom is that you’re in the driver’s seat.  Interest rates and prices are at record lows, and there’s a large inventory of new, existing and foreclosed homes from which to choose.  It’s a highly competitive environment with many sellers vying for the attention of a relatively small pool of buyers.  But what if you’re a seller?  Do current conditions mean that you’re powerless? The answer is no, you’re not powerless, but you do have to be smart. In this series we’re going to offer straight talk and practical information about the home selling process so that you can be a smart seller — in any market.

First let’s look at the local picture.  According to the Henderson County Board of REALTORS®, during the first quarter of 2009 there were 1,626 homes on the market, approximately twice the number than one year ago. The average selling price was $214,596, a slight increase from 2008, and local MLS listings averaged 137 days on the market, an increase of 35 days over last year. The most active price range was between $100,000 and $300,000, with 1,004 listings. Although there were over 600 listings above $300,000, there was much less traffic and significantly fewer sales, partly because buyers from other areas aren’t able to sell their existing homes, and some have more difficulty qualifying for a mortgage.

Changes in interest rates and mortgage financing have affected the local market. Favorable rates and incentives such as first-time buyer credits are helping to improve conditions, but financing requirements are more stringent. Banks and lenders are active, but the approval process can take longer, partly due to the large number of homeowners who are refinancing.

What does all this mean to sellers?  Expect more competition and a longer time on the market than in the past. It also means that you must get your home in order. With a large inventory available, many buyers are demanding a home in “move-in” condition, meaning they won’t have to clean, paint or make repairs.  Does your house create that impression?

Smart Selling Tip:  Size up the competition.  Visit open houses and compare them to the location, age, condition and features of your house. This will help determine your selling strategy, including the preparations needed to compete effectively, and the listing price. Be honest with yourself and be realistic.

©2009 Sandy LeRoy and Mary Stephens