Is selling your home in the winter a good idea?

For several reasons, some home owners decide to take their home off the market if it hasn't sold by November.  Not only is it cold and buyers seem to be far & few between, but the holidays are around the corner and sellers aren't as willing to keep their homes ready to go during the season.  But, is it really a good idea to take it off the market during the winter?  While some sellers may not have a choice, because of relocation or financial reasons, here are a few things to consider if you do have the option. 

1. There ARE still buyers looking for homes in the winter! Believe it or not, there are buyers always looking for homes, whether it is July or December, so you may miss out on those buyers if you take it off the market.

2. There is less inventory in the winter, which means less competition.  At the peak of the market, there were over 1,300 homes available in Boone County.  At the lowest point of inventory in January, there were only 980 homes on the market.  This is almost a 25% decrease in inventory!

3. Although the number of sales from November - February is about half of that from April - July, statistics show for the homes that do sell, Sellers aren't giving them away.  The average price for winter months is actually about $4,000 higher than in the summer months, at $179,500 vs. $175,600.  The price per square foot is actually identical in both the Winter & Summer at $84/sq ft. 

So, just because Old Man Winter is lurking around the corner, don't jump off the market...it just may be your lucky season!

JK

Foreclosures Up Nationwide, but not in Boone County

A report released today indicates an up-turn in foreclosures nationwide from September to October.  Although the Boone County Recorder's office reported a slight increase between the months, there is nothing out of the ordinary for the year, and Boone County is still fairing very well when it comes to the number of foreclosures available. 

Currently in Missouri about 1 in every 1100 homes is a foreclosure, and in Boone County only 1 in every 2900 homes is a foreclosure.  Compare that to the national average of 1 in every 563 homes being a foreclosure and Boone County and Missouri are both doing very well. 

In the last year, foreclosures represented about 8% of the sales in the Multiple Listing Service (MLS).  The good thing about foreclosures is the rate at which they sell, with an average of 40 days on the market, compared to 85 days on the market for a "normal" listing.  This is explained by the bank's need to sell the property quickly, and in turn, they price it usually lower than market value.  The average price for a foreclosure is $107,000 and the average price for a "normal" listing is $170,000, a significant difference. 

To sum up, while the rest of the nation is still struggling with foreclosure rates, we in central Missouri seem to be recovering quicker and looking toward an up-swing in real estate in 2012. 

JK