February 2017 – Monthly Market Update
Hello again, this is Colley Bailey with Fathom Realty. Thanks for joining me for this February 2016 Monthly Market Update.
I’m sorry the Update is a little late this month. The beginning of the month was pretty hectic, and just this week, we’ve had a very tragic death in the family. Amanda’s Uncle suffered what appears to be a massive heart attack, and he didn’t make it. This man was an incredible husband and father. Just the best guy you’d ever hope to meet, and he left us too soon. He was only in his mid-40s. So, we’re heading to Louisiana to be with family this week.
Unfortunately, that means I won’t be able to do the video portion of the update like I usually do.
However, I do want to keep you all up to date on the market as I’ve committed to doing, so let me just focus on a few interesting points this month. Let’s take a look back at January’s numbers.
The first thing I’d like to point out is that January is usually the worst month for NWA real estate in terms of average sale price and numbers of sales. This graph clearly shows that trend. (I’ve circled the January data in red.)
However, notice that this January was the highest in both Average and Median Sale Price. So, even with the seasonal slowdown, we’re still on an upward trend, Year-over-Year.
I’m excited to see what 2017 holds for our market. We were ranked as the #5 city to live in America by the US News and World Report. This is the second year we’ve placed in the top 5. Last year was #3.
We continue to have good job opportunities, and we continue to have a big influx of people moving into our communities. So overall, we have a strong pool of buyers, and I don’t see that changing.
However, interest rates have risen over the last few months, making homes more expensive to purchase. Should the interest rates continue to rise, we will probably start to see a slowdown in the market later this year. Maybe not a decline, but an easing of the rate of growth. Other areas in the US have already seen this slowdown starting to happen. But again, our local economy is doing well, and our NWA communities are very desirable places to live.
Much of this depends on Federal Reserve policy, and currently there is still quite a bit of pressure on the Fed to keep rates low. Really, they’re in between a rock and a hard place. If they let interest rates rise, the fear is that it will halt economic growth (they’ve been trying to bolster the economy with low rates since 2008.) But, if they keep rates low for too long, we may start to see too much inflation, which will hurt the value of the dollar globally. So it’s hard to predict which way the Federal Reserve will move. Any move they make has negative consequences at this point. And of course the real estate market is just along for the ride.
Region wide, those average sale prices outperformed last January’s by about 13%. We saw 17% fewer properties on the market with only a 1.5% drop in the number of sales, which accounts for the higher prices.
So, I know I keep saying it, but if you’ve got a home to sell, this is a phenomenal time to get it in the market. Homes are selling for great prices. Plus, you can still a low interest rate on the next purchase.
If you are thinking of selling your house, head over to www.HowToSellNWA.com and grab my free Listing Secrets there. That will walk you through all my Pricing, Presentation, and Promotion Strategies to get the best results in the current market.
Don’t hesitate to call me at 479-856-9422 or email me at firstname.lastname@example.org.
Once again, this has been Colley Bailey with Fathom Realty providing “Your Premium Real Estate Experience.” Thanks.