***Updates on the Tuscaloosa Home Market***
According to data from the Culverhouse School of Business at the University of Alabama, the Tuscaloosa and Northport real estate markets that have been so active through most of 2018 began to cool off as of July 1st:
- Home closes were down to 249 in July vs. 320 in June
- Home inventory climbed to 3.5 months vs. only 2.7 for June
- Home sales for the July 1, 2018 report were down slightly from even 2017 numbers
- The average sale price dropped to $212, 621 from prior month number of $233,943
- The median sale price was down almost $10,000 from the June 1 report
These July numbers represent a significant drop-off in both sales volume and sales prices. As well, the return to a bit of inventory in the market is a welcome change from what has been a “rock and a hard place” for most buyers – especially those looking for homes for sale between $100-$200K.
If the trend continues, what does it mean for home buyers and sellers this year? Let’s take a look at the top possibilities:
More Affordable Homes in Tuscaloosa & Northport
This week, dozens of articles like this very thorough example from Curbed have flooded the media airwaves with proof that the U.S. home market is cooling rapidly at present. While the long-term news may be more worrisome due to the precarious state of the national economy right now with the trade war, bailouts, slow wage growth, rising debt, and budget underwriting concerns, in the short term this cooling means sellers will start to lower the home prices as mortgage applications and the pool of ready buyers begin to shrink. For the last few months, I’ve been working with dozens of buyers who’ve had continued trouble finding the homes they want at the right prices. Right now, the increased inventory and lower prices will finally help me find these buyers the right deal. If you’re looking for a home and have a hard price ceiling, now’s the time to reach out to an agent and start looking in earnest.
Better Opportunity for Buyers
When mortgage applications drop like they have of late, homes stay on the market longer. That means there are more homes to choose from and sellers who see their listings languish reduce prices and are usually more open to better deals than what we’ve been seeing in what has been a very tight buyer’s market. This creates more aggressive dealing with local lenders, speedier pre-approvals, and offers to purchase that are more favorable to buyers than sellers. In other words, right now may be the best time for you to get your best all-around deal AND to get your first choice home.
Sellers Need to Emphasize Marketing to Get Highest Value
When housing markets cool off, home prices drop. But good agents who make use of effective digital home marketing can still get their clients the highest possible values for their homes even as inevitable price adjustments are made across the market. Gross-scale price drops take time to spread throughout a cooling market, so sellers shouldn’t immediately hit the “price reduced” button. They should, however, move quickly to work closely with agents and brokerages who can get their homes in front of just the right buyers sooner rather than later. Having a Realtor® put your home in MLS then sit back to wait for offers almost guarantees you won’t get the right buyers in time. Many agents take far too long to act as markets change, thus causing their clients to lose value.
As the market here changes (and with bigger changes coming on the horizon next year), it’s imperative that willing buyers and sellers seize the opportunities while they can. Knowing exactly when that time is for your circumstances is essential.
Contact Me Now
Get in touch with an agent who can help you seize your moment! We deliver free, advanced digital marketing for all clients that helps sellers get more and we do continuous data analysis of trending prices in all local neighborhoods and areas to help buyers win big.
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