Real Estate Advice

Springtime in January?

Dear Pat,
We’ve heard you say that the spring market really begins in January. Do you mean it’s busier than it will be later in the year? Frankly, we find it hard to believe that the January weather, plus the normal post-holiday doldrums, wouldn’t dampen the buying mood. Especially this year, when buyers are waiting for prices to come down further. Aren’t you just cheerleading?
---We’re Skeptical

Dear Skeptics,
You’re probably referring to a recent column where I wrote: “I’ve said it many times before, but I want to emphasize again that the spring market unofficially begins in January. After the holidays buyers traditionally return to the marketplace in larger numbers than sellers, creating a demand that makes it much easier to sell than at nearly any other time of the year. That’s likely to happen again this winter, in spite of the slower demand generally experienced this past year.” Cheerleading? No, but I am increasingly optimistic, based on my own market experience in the past few months.

First, let’s answer your question by clarifying what I mean by “spring market.” This is the term I use to describe the turning point in the market, where increased buyer demand begins to decrease the on-market times of listings, prices begin to rise and become markers for the rest of the year. This has traditionally occurred in January, but it won’t show up in sales statistics as a “busier” period than later months such as May or June. By then, price precedents are already established and hopeful sellers are rushing to the market. Of course, more buyers and sellers are active during the late spring and early summer—but the turning point begins in January. Savvy January and February sellers understand that their houses will get more of the attention they deserve since they will be on the market before the bulk of listings arrive later in the spring.

Now you can call me a cheerleading Pollyanna, Skeptics, but I can tell you from my own market experience the last quarter of 2006 that most of the quality listings in our area actually sold. By “quality” I mean well conditioned, well located and well priced: parameters that smart sellers have respected in every kind of market over the years. Buyers aren’t necessarily waiting for prices to fall—but it’s obvious they’re holding back from listings that reflect too many sellers’ unrealistic expectations. Another reason for optimism this January: interest rates are very attractive right now, and many buyers might want to act before increased activity drives rates up. Let’s not break out the pom-poms, but sellers of quality listings might have good reason to kick up their heels this New Year.

Pat Rosaves is a full-time real estate professional living in the Seward - Longfellow area. She has more than 29 years experience in helping people with their real estate needs. Questions may be sent to her at River Realty, 2543 38th Avenue South, Mpls, MN 55406. Or call her at 612-724-1314 or email her at Pat@RiverRealty.net

HOME	ABOUT	AGENTS	DEAR PAT	FIND HOMES	CONTACT
River Realty is the most experienced Longfellow and Seward home seller. We feature Longfellow homes and Seward homes. See Homes for Sale for Longfellow houses for sale, all Longfellow real estate, Seward real estate, and South Minneapolis homes. We specialize in Longfellow, South Minneapolis, Seward, Nokomis and Southeast Minneapolis neighborhoods.