Market Guidance from our Real Estate Coach

[David Ginn]

Okay so the guidance this week is that the market is extremely hot on the retail side, inventories are at an all time low. I saw an article the other day that said that there's about 4 million homes in deficit right now. So the demand is way higher than the supply and there's 4 million homes that are needed. It said the primary factors were that foreclosures have stopped, which would bring inventory on the market, and the other one was that new construction during covid slowed down and so the new builders were not able to keep up with the demand. So right now you have an extreme demand problem, which is forcing the market up dramatically. So if you are trying to sell a house or if you are comping a house right now, you need to do 30 day comps because the house that sold today may be worth another 5-10% 30 days from now. You also have to do four projection comps. For instance, I looked at a comp where the value 3 months ago was 107 a foot, and then the current sell was 117 a foot, and now the current list price is 125 a foot and that was a pending sale. So we looked at the house, where you normally don't comp for a seller pending transaction, in this case we can see that the price was most likely moving to 125 per foot, based on the neighborhood and all this happening. So right now is a great time to sell a home. For those of you who are buy-and-hold investors out there, I strongly advise you to put everything you own on the market, Sell it and pull your cash out right now, and get into flips as the market goes up and then even as it starts to head down. We’ll start to see all the inventory come back into the market and there will be a correction the other direction. That’s my guidance for this week.