Archive for January, 2010
Annapolis Real Estate 2010: Ten Trends and Predictions
January 9th, 2010 Categories: Buyers, Real Estate News, Sellers
Wondering What the Annapolis Real Estate Market is Going to Do in 2010? So Are We
“It’s tough to make predictions, especially about the future.” – Yogi Berra
I’ve spent the last couple of hours – more time than I should have – reading what every blogger and apparent expert thinks the real estate market is going to do in 2010. Some of it is rosy, like stabilizing prices and strong sales. Some it much less so: predictions of many more foreclosures and higher interest rates.
I have no idea whether or not they’re right: most of these things happen WAY above my pay grade. But we – The Moss Haedrich Team - do have our boots in the trenches selling real estate here in the Annapolis area. We notice things, we see trends, so we thought perhaps you’d like to hear about some of the trends we’ve spotted for 2010.
1. Sellers doing less costly improvements. And why not? Why put five grand into replacing kitchen cabinets when a fresh coat of paint will spiff them up just fine? We just listed a home where the seller did just that. They look beautiful. It’s still crucial to make a home look fab prior to a sale. But sellers are getting smart about where they put their dollars in these equity-squeezed times.
2. An early spring market. Maybe because we’re already so busy. Unless we get some terrible weather in the next couple of months, it should be a very active first quarter. First-time and buy-up buyers can get their tax credits if they have a contract by April, so the early rush is on.
3. Buyers getting started earlier with their searches. Each month we talk to about 150 new potential home buyers. It’s not unusual to hear that they’re still 12+ months out on a purchase. They’re researching the market thoroughly, watching home sales and figuring our where the value is. Today’s home buyer is very well educated and they’re using the internet – and Realtors – to help get the information they need.
4. Speaking of Realtors, they’ll continue to be fewer of them – here in Anne Arundel county and everywhere else. The real estate business has changed dramatically in the last few years. It’s become more competitive, technology-driven, and there’s little room for those who haven’t kept up. More and more part timers and dabblers are getting our of the business altogether.
5. The home office is king. Our buyers want them, often two of them. Makes sense: the Great Recession has found more and more people starting businesses and working from home. If you’re selling a home, stage an extra bedroom as a sleek home office.
6. Excellent deals in new construction. We can’t believe what some of the spec and model homes are selling for in the Annapolis area. These subdivisions are dying for occupancy; they’re making great deals and throwing in all sorts of upgrades to get you in. Our new construction buyers are some of the happiest buyers out there.
7. Incredible deals at the high end of the market. This is the slowest segment of the market. Many of these homes have been sitting on the market for more than a year. The prices have nowhere to go but down.
8. First floor master suites and elevators. A lot of today’s baby boomers don’t spring up the steps the way we used to. First floor masters and elevators are hot with many of our buyers.
9. In-law suites. Another sign of the recession: combined households. We just sold a home in Edgewater that had a very large in-law suite, complete with kitchen, bedroom, living room and home office. Potential buyers flocked to see it.
10. Less infatuation among buyers for short sales. Short sale buyers often think they’re going to get a steal. Quite often, they’re getting nothing but frustration. It can takes months to get an answer from a bank about an offer. Buyers are getting fed up.
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