Three quarters down and one to go. September’s numbers are in and our real estate market is strong.
Properties continue to go under contract within the first couple of weeks on the market, we have slightly fewer listings which results in slightly fewer sales, and there isn’t much coming on the market. The biggest different we are seeing is that prices are 15% higher than they were at this time last year. That means that what was a $550,000 property in 2015 is now a $635,000 property. That’s not insignificant. Prices are driven by supply and demand and the numbers are indicating that 2017 will likely be another strong year for our neighborhood’s property values.
The main difference we are seeing is behind the scenes. Even though properties are selling just as quickly as last year, they are not getting 10-20 offers like they were last year. Instead we are seeing 2 or 3 very strong offers from buyers who are used to the market dynamics of today. My expectation is that in 2017 we will see the buyers’ feet come off the gas pedal a bit and the market will begin to balance out. My prediction is that 2017 will be another year of double-digit appreciation but the momentum will begin to slow. In turn, 2018 might be back down to high single-digit appreciation.
Stay tuned Martin Acres and Majestic Heights… the fourth quarter is going to reveal a lot about the next two years of real estate.