In the world of high-end real estate auctions, many luxury auction houses continually fail to recognize the overall market’s influence on sellers. And, although Luxury Estates Auction Company normally operates above the status quo within the luxury real estate sector, they still realize it serves sellers to understand broader shifts in the market.
With this in mind, let’s look at the real estate industry across the nation. Perhaps by getting a bird’s eye view of market behaviors thus far in 2019, we can gain insight into the best avenues for sellers.
Buyers are back!
According to the National Association of Realtors (NAR), pending home sales rose 4.6% in January compared to the previous month.
So, despite the grueling year behind us, we do see buyers saturating the market. Perhaps this shift is a result of the lower mortgage rates seen lately? Or, maybe buyers are becoming more confident in the economy slowly gaining traction?
The NAR’s chief economist, Lawrence Yun, said, “A change in Federal Reserve policy and the reopening of the government were very beneficial to the market.” He added, “Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.”
What does this mean for sellers?
The recent arrival of buyers to the market means sellers will need to step it up in the next year. Alongside competition becoming much fiercer, I’d wager we will see some clever sales tactics arise out of the housing market comeback.
Also, if you’re actively selling a home, don’t get too excited. Regardless of the recent spike in pending home sales, contracts continue to sit 2.3% below last year’s national average.
Happenings in your neck of the woods
Locally, pending home sales in the Northeastern US popped up 1.6% and stand 7.6% higher than last year. Throughout the Midwest, sales grew 2.8% in a thirty day period, but remain 0.3% below the annual average. Meanwhile, the West only experienced a slight increase in monthly sales, sitting at 0.3%, but underwent a 10.1% decline compared to last year.
In-and-around our neck of the woods, sales rose a whopping 8.9% monthly. In contrast, our annual sales hang 3.1% below last year’s figures. Nevertheless, 2019 seems to be shaping up fast.
Now, I know what you’re thinking. It sounds like a buyer’s market. OK. Although this may be true, it’s not exactly 100% accurate either. As Glenn Kelman, CEO of Redfin, put it on CNBC’s Power Lunch, “The buyers and the sellers are in this dance right now where it’s a little harder to put deals together because nobody’s certain where the market is going to land.” Kelman continued, saying, “It’s a little bit better than it was in the fourth quarter, we’re seeing stronger buyer demand, but it’s not as if people are willing to pay any price to get a home, which is what we saw at the beginning of 2018 and for the past four years before that.”
Adding more “blood in the water,” the number of mortgage applications as lower rates persist into March. According to the Mortgage Bankers Association, the volume of mortgage applications rose 5.3% from the past week. This hike was nearly 0.5% above last year. So, it would appear lower mortgage rates are positively affecting refinancing and purchasing volumes.
Luxury Estates Auction Company always stays one step ahead of shifting tides throughout the real estate industry. And, even though it is important to gain perspective on the housing industry at a macro-level, we march to a slightly different drummer.
So, if you’re unsure about how to best sell your luxury real estate at auction, get in touch with our experienced team.
Luxury Estates Auction Company keeps up-to-date on the most aggressive marketing strategies regarding luxury real estate. Not to mention, they can help you get top dollar for your luxury real estate today!