Seasonal Report
'Tis the season!
My tree is up, and my little guy sure is excited.
Tuesday December 9, 2008
Winter
What a busy fall, leading into this winter!!!
In November, The Masiello Group formed a partnership with Better Homes and Gardens to form Better Homes and Gardens Real Estate - The Masiello Group. The new combined company is impressive and offers clients tremendous value.
The market...
People regularly mention to me they are watching the prices in town, but don't see any significant drops in price. They ask me what is allowing homes to retain their relative values in York.
Simple, location location location!
I explain to them that when a reasonably priced home with good value comes on the market, buyers recognize it. There are many buyers in this community and others outside the community who are financially secure, and are eager to purchase property that represents good value. As a REALTOR® in town, I witness many closings take place where the deals close using cash, in fact I had one this month. For these buyers the relative "credit crunch" is not a factor. Many of the town's investors and home owners do not flip property, they buy and hold, and allow economics to generate their return over time. All the characteristics that have made the Yorks desirable for the past 50+ years continue to do so today despite the constant economic "news".
Consider a buyer who purchased a home in a beach community at Short Sands or Long Sands two or three years ago, with an initial down payment of $30,000 on a $220,000 property. While their home may not have appreciated significantly during 2008, perhaps it even dropped in value some, their return on investment of $30,000 is still considerably better than had they put that same $30,000 into an S&P 500 index fund, or most any mutual fund for that matter.
Rather, it is most likely their home value increased between 2005 and 2008, and now their $30,000 investment is worth $50,000 - $80,000 factoring in appreciation over 2 to 3 years. So I ask, if your property were continuing to appreciate above your purchase price, you have the opportunity to rent it out at a fair price all summer long, what urgency is there to sell it? None really, which is why there are not a large number of desperation sales in town.
While there are some properties on the market which exist below their peak town assessed valuations, a REALTOR® is likely to offer a reasonable explanation of why, and what value the home may represent to you as a buyer, or not. Sometimes location is influenced by factors including home condition, room sizes, lot size, lack of garage, etc.
In closing, as you ponder 2008 into 2009, be aware that all prominent market analysts are articulating yet another drop in interest rates in the beginning of 2009, possibly below 5%. So if you are anticipating a purchase in 2009, now is definitely the time to become aware of inventory and compare properties in order to make an educated decision. Let me know if I can be of assistance.
Merry Christmas!
Cindy
View past seasonal reports.