Yes, it’s true—the market is bouncing back. Well, maybe not bouncing, but at least creeping steadily. First half of 2013 results show median price increases of more than 30% over 2012 in places like Akron OH; San Francisco, Oakland, and Sacramento CA; Atlanta, GA; and Phoenix, AZ. Slightly lower but still promising increases showed up in Reno and Las Vegas, NV. (National Association of Realtors)
Interest rates are edging up but are still low by historical standards. When interest rates rise, first time home buyers are the first market segment that feels the effects. And while interest rates rise, the age of inventory declines. Across the country, the median age of inventory was 78 days in March 2013. That’s a decline of more than 20% from February, and another 12.3% from March 2012.
So the Realtor is faced with three concurrent challenges in order to thrive in today’s environment:
- How to get sellers to list their properties
- How to attract first-time buyers
- How to tap into hidden markets