Video Transcription of June 2018 Real Estate Market Update
Tyson Lund with the Lund Team here for a market update for the summer. And we want to share with you a few interesting statistics as we go forward. We are finding that it's all about expectations. And right now sellers can do themselves a big, big favor by understanding some small nuances in this market.
Properties that are priced right, that are respectful of recent comparative sales within the last six months and they price them almost cordially, friendly, not asking too much, will sell within 14 days. And they tend to sell right around, some a little bit above asking, some a little bit below, but the statistics actually show it's right about 100%. That's amazing.
After 14 days, if sellers elect to price the property even more aggressively, we are finding they are not having the success that they once did, maybe last year or the year before that. Buyers really aren't, they're not having it. And those properties that are tending to be priced above market are going through one, two and even as much as three price reductions before actually finding that buyer.
And the market time, if after 14 days, actually blooms up to about 70 days and that's just the sellers trying to price and then coming back. Buyers are finding that they have a little bit more inventory to look at, which is really, really great. We have been having months and months of few options for them so they're finding there's some new listings, some exciting new listings. Some not always priced the right way depending on which city and which area that we're in.
But buyers should be excited about this market. The rates are still good. Historically, we are up from last year, a little bit closer to maybe a point above last year, which affects certain price points a little bit more than others. But buyers are still getting historically very, very low rates on the mortgages. So they can lock into a rate and enjoy it because they will be happy they owned a house in the long term.
We can run some interesting statistics for people looking at investment property or even a long term horizon. Owning real estate still makes sense, even at today's high prices because rents are very, very high. So if you're planning to stay in this area for two or three years, I would strongly consider exploring your options to purchase.
And we love those kind of conversations, we want you to come in, we want you to ask your questions, because we love this business and we love the market. This is Tyson Lund with your summer market update. And we appreciate you very much.
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