Last Tuesday, after hearing that rates for a 30 year fixed conventional loan went up to 4.625%,
some people wondered if we would return to a 'buyer's market'.
People wondered if the jump in interest rates would push a number of buyers out of the market and force home owners to lower the asking price of their homes if they want to sell. Time will tell.
In Kemp Mill, a subdivision in Silver Spring, MD., a home at 707 Horton Drive was listed in February 2013 for just under 400k and the seller decided to withdraw it from the market in March. Last Thursday, 6/28/13, 2 days after the interest rates went up, the sellers decided to re-list their home for about $20k higher than they did back in February. My understanding is that the sellers did not make any major improvements to the home. They simply thought that they could take advantage of the market and command a higher price than they were asking several months ago.
The home went under contract in 4 days (July 1, 2013), which tell us that the sellers likely got a really good offer and they were right that they could take advantage of the market.
The 3 most important words in real estate: location, location, location can drive up (or down) a price. Market conditions vary by states, cities and subdivisions. People who know and/or live in Kemp Mill know that Horton Drive is a sought after location. Somebody who wants the location was ready, willing and able to pay probably more than what the home was originally listed for several months ago. The previous listing data information was ( and is) available for the buyer or his/her agent on MLS to see before deciding what price to offer the sellers this time around.
It will be interested to see how the rest of the summer plays out and if sellers can keep commanding their prices or if home prices come down.
If you or someone you know is considering relocating, your first move should be contacting me for a free and confidential seller/buyer consultation. I always have time for and greatly appreciate your referrals.
Life is good!
Licensed in MD & DC
Long & Foster Real Estate, Inc.
information deemed to be accurate but not guaranteed