What’s Selling in the Sun Valley Real Estate Market?
There may be a chill on the air, but real estate in Sun Valley is HOT!
Like many areas across the country, Sun Valley real estate inventory is down, which is very annoying for buyers. I get it. There is nothing more frustrating than getting excited about a home and then finding out it went pending/under contract while you were having dinner last night.
Indeed, Mark Zandi, chief economist at Moody’s Analytics, recently told The Washington Post that, “Market conditions should be good for owners looking to sell their homes. The historically low number of new and existing homes for sale makes it even more of a seller’s market.”
Many buyers are hoping for the “great deals” we saw during the Great Recession. Those days are long gone. I recall many buyers not having enough confidence to jump into the market what wasn’t appreciating, and now they are afraid to jump into a market that is appreciating. As they say, there is only one buyer who buys at the bottom and only one seller who sells at the top – the rest of the time the market is in a state of flux.
But as a buyer you don’t have to be powerless in a fast-paced market. Here are five strategies for competing in a tight market.
What can a buyer do to be more competitive in our tight Sun Valley real estate market?
- Negotiate Appropriately. This means if you find the house of your dreams, don’t miss out by offering a low-ball offer. You don’t want to make an offer so low that the Seller doesn’t even respond. Sellers these days are as educated on the market as buyers. In short, make an offer that is sure to get the seller’s attention!
- Pay Cash or Get Pre-Qualified. I know how obnoxious it sounds to just “pay cash,” but if you can, a cash offer is more desirable to some sellers than a higher price because they don’t have to worry about an appraisal or wait for loan approval. Buyer these days are wise to get pre-qualified for a loan before making an offer. An offer without a pre-qualification letter isn’t as strong or believable as one with.
- Make a Clean Offer. If you can, do your due diligence in advance and don’t load up your offer with a lot of contingencies. In other words, check out the school district, neighborhood, lot size, zoning or whatever is most important to you before you make an offer. And don’t dilly-dally when doing your due diligence to the extent that the property sells while you are figuring out average class room size. Keep it simple. And be expedient.
- Represent Yourself as a Serious Buyer. Be the buyer you’d like to see if you were selling your home. Offer a reasonable earnest money deposit and include a copy of the earnest money check with your offer.
- Ask your Broker about the Seller and Their Motivations. Keep in mind that not all sellers are hard-nosed. Once you know their situation, do what you can to establish a connection with the sellers. Information is power. If you know that the sellers want to move in time to get their kids into a new school or they are moving for a new job, try to accommodate their closing schedule. Your offer will look stronger if you are sensitive to their needs. Write them a letter and submit it with your offer, telling them why you love their home. But be sincere – after all, Sun Valley is a small community and the rumor of insincerity or fraud travels fast.
How can you tell if it’s a Seller’s Market?
There are a few statistics to keep an eye on.
- Look at the absorption rate. Are homes selling faster than new listings are coming on the market? In the case of the Sun Valley residential real estate, the answer is YES, by 19.36% year-to-date.
- Look at the “days on market” statistic. Are homes selling faster than previously? Again, the answer is YES. Day on market are down by 23.42% YTD.
- Look at the change in median price. If the median price is moving up, you are most likely experiencing a seller’s market. And YES, Sun Valley is experiencing an increase in median price. Prices are up YTD 5.88%.
- Look at inventory levels. If inventory is low, it’s to the seller’s advantage. YES, residential inventory is lower in Sun Valley this year-to-date by 14.3%.
Sun Valley Market Summary – Year-to-Date September 30, 2019
These number represent our “residential” market which includes all single-family homes, townhouses and condos across all neighborhoods in the Sun Valley MLS.
|2019 YTD||2018 YTD||% Chg|
|Average List Price||$1,428,891||$1,352,490||5.65|
|Median List Price||$729,000||$629,250||15.85|
|Average Sale Price||$714,735||$688,184||3.86|
|Median Sale Price||$450,000||$425,000||5.88|
WHAT PRICE RANGES ARE SELLING?
|SOLD LISTINGS||2019||2018||% Chg|
Pending/Under Contract Listings – Year-to-Date
|Pending/Under Contract Listings||2019||2018||% Chg|
What is happening with inventory levels across various price ranges?
You may wonder why our SOLD deals and PENDING deals are down year-to-date. One theory is that due to low inventory levels, buyers are sitting on the sideline until their perfect home comes on the market. And a second theory is that this is a foreshadowing of a slowing market. Time will tell.
And check back for my next blog which will outline real estate statistics in the Sun Valley MLS by area. Yes, location matters!
Sheila Liermann | Sun Valley Real Estate Associate Broker
Call Sheila Liermann at 208.481.0450