Despite talk of recession, falling house prices and higher inventory, many are optimistic about the prospects that spring brings to real estate sales. They say the transformation from winter weather and bare landscapes to sunny days and blooming flowers encourages buyers to get outside and find the home of their dreams.
History indicates that spring has been the savvy time to sell. Elizabeth Blakeslee, the regional vice president for region 3 of the National Association of Realtors and associate broker with Coldwell Banker in the District, says that 30 percent of home sales in 2007 were completed during the months of April, May and June.
“The statistics indicate that spring is the busiest time in the market,” she says. “It’s driven by the weather and the school year.” Families who put their houses on the market want their children to complete the school year before dealing with the disruption of moving and transferring to another school.
The District has reflected this national cycle of activity. Statistics from the Greater Capital Area Association of Realtors show that there were 402 contracts for single-family homes in May 2007 compared to 185 contracts during December 2007.
Although faced with negative predictions of a sluggish market, several real estate agents in the area who were interviewed for this article say this spring should be no different from other years, and that, with accurate pricing and attractive presentations, homeowners can still sell during these traditional peak months.
They argue that the bleak numbers being quoted for the national housing market don’t reflect the local picture, as conditions can vary tremendously from area to area.
The agents say they believe that, compared to other areas, the District, Virginia and Maryland are much more resilient because of the steady influx of military families and corporate transfers. They also point out that sellers this year can reap the benefit of pent-up demand from buyers.
Eager buyers can, in turn, take advantage of lower interest rates, currently at 6.25 percent, and increased temporary FHA loan limits offered by HUD that range from $271,050 to $729,750.
The agents say the basic desire to buy in spring is psychological: Buyers are happy to be out in the sun again.
“As it gets warmer, people get spring fever,” says Ted Kramer, a Realtor with RE/MAX Allegiance in Arlington. “People are buying based on an emotional reaction. They are smelling the difference and waking up to their plans for the rest of the year.”
Mr. Kramer says that, after being cooped up, coming out of the holidays and paying off holiday debt, buyers initiate their search for a new house during the spring. He recommends that sellers who want to sell during this time get their property listed by the beginning of June, before vacation time starts.
Although the perception is that the market is glutted with properties that just won’t sell, agents in the District say that, for specific buyer groups such as single professionals seeking a one-bedroom condominium market in the $300,000s, there is actually not enough inventory this spring to satisfy the need.
Rachel Valentino, a Realtor and president of the Atlantic Coast Connection Long & Foster agency in the District, says that although the concept that spring is the best time to sell is a common belief, this assumption is dependent upon the seller’s unique market.
“Each specific segment is completely different,” Ms. Valentino says. “Even within the District, it’s neighborhood by neighborhood.”
For example, she says, a seller near a Metro station is in a much stronger position than other sellers.
“Despite what everyone says, it’s a very strong market, even for sellers, as long as they are realistic,” Ms. Valentino says.
The properties that will linger longer on the market are those not in good condition and not priced successfully, the two criteria for selling.
Ms. Valentino says sellers would be wise to list by May or June because once the scorching summer days set in, the pace of things will dramatically shift. She says the market winds down in the District during summer because many residents head out of the city to vacation and Congress takes its break as well.
Not all real estate agents are so upbeat, though.
Ray Hamilton, broker/owner of Realty Direct in Falls Church, concedes that although this time of the year used to have a major impact, the spring flowers and cool breezes won’t be enticing enough to motivate buyers much this season.
“I typically try to be optimistic, but the market is telling me I still need to be pessimistic,” Mr. Hamilton says. He predicts that more foreclosures will continue to hit the market, which will soften prices even more.
“It has not turned around yet,” he says.
Assessments of a continuing tough market make some buyers jittery. Sellers who want to entice these buyers must ensure that their homes are pristine and not out-of-date, says James Rowell, a Realtor with Prudential Ridgeway Realty in Waldorf, Md.
Mr. Rowell says curb appeal is more critical than ever in a fiercely competitive market where buyers can be selective.
“Exterior appeal in the market we’re in will get people inside,” Mr. Rowell says. If the front yard is overgrown and exterior paint is peeling, buyers are more likely to explore the abundant other properties available.
It is possible to make the best impression and show off your home’s best features without major reconstruction and spending more than you can afford.
“You can do simple little things — it’s all relative to the price of your home,” Mr. Rowell says. He started working with a seller whose house in Waldorf had already been on the market for 120 days.
The property was built in 1988, and Mr. Rowell noticed that the original light fixtures were still being used, so he recommended purchasing new light fixtures with 75 watt bulbs to brighten up the area.
The seller also installed new flooring at under $2,000, to give the older house a fresh look. The house sold in seven days.
To make the living space in the home look as large as possible, agents advise getting rid of clutter, unnecessary furniture and personal items.
Sellers who see too many end tables, magazines piled up and closets overflowing won’t be able to envision their own furnishings there, and the space will appear too cramped.
In addition, industry insiders advise that colors in the home and any upgrades should be as neutral as possible to appeal to a broader audience. Even the odors in the home should be pleasant, but not so much that it appears that the seller is covering up a bad smell.
If sellers take these suggestions into account and ensure their home is presented and priced accordingly, they will sell in a reasonable time frame, area agents say.
There is no excuse or rationalization for waiting to list your house, despite negative talk of an impossible market, agents add.
Karen McGavin, a Realtor with Keller Williams in Vienna, says now is the time for buyers who want to move up to the next level to take advantage of available opportunities.
“Spring is where it’s at,” Ms. McGavin says. “You don’t want to be one of the ones that is left over, one of the ones sitting there in August saying, ’What do we do now?’ ” she says.
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