Welcome to another Market Update with Dan and Bill. This month President Dan Kruse, and Founder and CEO, Bill Kessler cover what is going on in all of the CENTURY 21 Affiliated marketplaces.
Bill starts the conversation off by explaining that the first quarter of 2013 gave Agents a false positive outlook on the first quarter of 2014. "Two things happened, one we knew about and the other sort of surprised us," Bill explains. "In the north we always have bad weather but not to the extent that we had it. It really did keep people away not only in the Midwest but throughout the country. The one thing we knew was going to happen, but has exasperated us, is the inventory issue." Agents are facing high buyer demand with very few homes on the market to show them. Even though the first quarter was slower than anticipated, due to the groundwork CENTURY 21 Affiliated laid in 2013, they continued to show success. Bill explains, however, that as April and May has evolved they have been "good" months but are still looking to improve overall numbers.
Dan just recently attended the NAR midyear meeting and explains, "Everybody I talked to talked about how tough the first quarter was, I think, by much of a surprise." Dan follows up by explaining how the first quarter of 2013 was one of the first fantastic quarters anyone has seen in many years, which makes it a tough comparison to this year. "Overall, everyone was hit by a slow first quarter. April started trending in a good position and May ended up being a fairly good month but not unbelievable," Dan said.
In Wisconsin, Illinois, Michigan, and Indiana the markets were all down between 14% and 17% in sales through the first four months of this year. "Fortunately, as an organization CENTURY 21 Affiliated, were actually up 18% during that same time frame," Dan said. Dan is hopeful the company is setting themselves up for a nice selling season especially in the June, July, and August months. "Key element in my mind is that we have to go out there and get those listings," Dan explains. "The more listings that we get the more overall sales we are going to end up bringing in and I think it will end up being a good three months for the entire company if we do that." Bill adds by explaining once you do get a listing, the importance of pricing a home right by doing a thorough Comparative Market Analysis (CMA). "What we found in most cases is that the market is exploding in terms of price due to a lack of inventory," Bill explains. If the property is a decent property and in a good market, initially pricing the home slightly higher than what the CMA may show is perfectly fine, however, price reviews every two to three weeks is highly recommended. "This is a market of rising prices," Bill said.
Lastly, Dan and Bill touched on one of the highlights of this past month, by congratulating Kel Svoboda, the Team Leader for the Milwaukee area offices, who has recently been recognized by REALTOR magazine's Top 30 Under 30 for 2014."It is a fantastic achievement by him," Bill said. "We are really proud of him and have a little spotlight video here for Kel to talk about his experience," Dan said.
For more information on the current market and to watch Kel Svoboda's spotlight video please watch the video above. To contact a REALTOR in your area please call 800.637.0046 or email us at firstname.lastname@example.org