Let's Take a Deep Breath

December 27, 2012
2012 in many ways has been a crazy year in real estate. From the beginning, we kept hearing about the "shadow inventory" and how it would swamp the market and cause prices to decline. It didn't happen and now the news media are even admitting that they over estimated the number of homes that would suffer foreclosure. As it turned out, our inventory of listings has shrunk to all time lows. In the last quarter of 2012, right up to today, buyers seem to be almost frantic to purchase a property. Multiple offers are routine engendering accepted offers considerably above list prices. This, of course, leads to appraisals that are less that the purchase price. Buyers now need to make up the difference or cancel the purchase which has led to more desire on the part of the buyers.
Traditionally, December is a slow month. Escrow staff, loan agents, title officers, underwriters, etc. have taken a holiday, but buyers and real estate agents are still busily showing property and writing offers. With the buyers hooked to searching the Internet for any new listings, phone calls, e mails and text messages are keeping agents active throughout this holiday season. We would like everyone to take a deep breath. Sellers seem to be taking a breather and waiting to list in 2013. However, buyers have not let up their searches. We know that with properties in such short supply and the level of desire so high, we need to be available and responsive. Crazy that in one year's time, homeownership has once again become a goal.