The inventory in 2015 was even lower than in 2014. A look at the graph is very telling. We only managed to see the inventory creep up over 50 homes in all of Washington Park from June through September this year. This low inventory resulted in bidding wars that sometimes brought in 10 or more offers and prices well over asking and a huge increase in price per square foot. Increases of 10-17% in those values truly are unbelievable.
Even the $1,000,000 plus market was hot. We saw a 39% increase in those sales in East Washington Park. We also had our first sale over 1 million West of Ogden when the renovated church at Pearl and Virginia brought $1,950,000.
What should we expect in 2016? We will need a build up of inventory to create softening in the market. With the low price of oil, higher interest rates and the stock market losses, we could see that increase. Some sellers may also be ready to put things on the market that they once lived in and have rented since the downturn. Once they go past 3 years of renting after they moved out of their personal residence, their sale becomes subject to Capital Gains tax. Some that moved out and rented in 2013 may be ready to cash in this year to avoid that penalty.
Any increase in inventory will be welcomed by buyers who have been under great pressure for the last 2 years. With the big run ups in value, Sellers have long exceeded any losses they saw during the downturn so may be ready to cash in on their gains. More inventory could be good for all.
Managing a bidding war for a seller or getting a buyer’s offer accepted in a multiple offer situation is something that takes knowledge and experience and a long term relationship with other Realtors. The kind of experience that The Bridge Team has can make the difference of many thousands of dollars to a buyer or seller.
If you know someone who is thinking of making a move this year, Shelley would be happy to apply her 34 years of experience to give them an honest opinion of what they can expect when buying or selling in this market. The goal of keeping her clients for life holds her to a higher standard than is commonly found in the real estate industry. Your call to Shelley at 303-331-4562 will be warmly received.