I came across the following headlines today:
“It’s time to stop calling this a recovery, and start calling it a boom,” writes Noah Smith for Bloomberg.
And this:
“Thirty-five percent of homebuyers in the U.S. aren’t even visiting the property before they put in a bid, amid torrid competition in a tight market, according to the latest survey by Redfin Corp.”
Both headlines got me thinking about an experience I had yesterday here in Memphis.
I went to look at a foreclosure being offered for sale that needs a significant amount of work. For the 45 minutes that I was there, three other folks along with their realtors came to look at at it. Can you say buying frenzy?
Is it even worth the bother to make an offer? We will see.
If you are thinking about selling, now is the time.
But hurry, before the boom bursts.
Any of you out there seeing the same in your area? Let me know with your comments.
I have been trying to sell a house in Memphis for 5 months now and not one offer, the price has been reduced about 5 times. The house is in good shape, it is in zip code 38111
Mayann,
Sorry to hear about your troubles. 5 months would have put you back in December, which is the worst time to try and sell but peak season is still upon us. Give it a little more time. 38111 has some nice areas and if yours is where I think it is you are in a nice area with a nice property. So don’t give up hope. I see a lot of nice stuff going quickly.
Unfortunately when a home has been sitting on the market for a while people (other realtors) think there is something wrong with it, even when that is absolutely not the case. Have you been having any showings? If you have, what type of feedback are you getting? Is there anything that potential buyers are pointing out that is stopping them?
Kevin
It is happening even in Detroit. Remember $1 homes anybody. I have seen SFR properties in ” nicer ” areas gone within a day. Cap rate went from 25 to 6 within 2 years.
Kay,
Are people moving back into Detroit? Is there any demand to support those increased cap rates? Or is the population just moving from place to place within the Detroit area like it is here in Memphis?
Did you ever buy one of those $1 properties?
Thanks for reading and commenting,
Kevin
Young people are moving to downtown from within the state and out of state. Auto is going strong and city is rebuilding the downtown. Out of state investors pouring money in like there is no tomorrow and I have seen these people fall victims to sly turnkey property dealers who promise high returns and then disappear. $1 homes were offered to firefighters, teachers, police and city employees. I did purchase $500 to $1500 homes, some are still performing well.
Sounds a lot like Memphis, except for the auto bit.
Thanks again for the comments.