Courtesy Ted Wilson
By Maureen Werther
For Warren and Washington counties, the real estate news is mostly good, according to Ted Wilson, owner of All -American Properties with offices in Glens Falls and Chestertown.
Wilson and his team of 22 agents have seen markets at their worst, their best and somewhere in between. He described the current residential market as “stable,” noting that the statistics from 2017 and 2018 are pretty similar. It could also be called a “flat” market, but Wilson is quick to point that he would rather have a stable market over one that is in decline.
For years, interest rates were a strong determinant for people contemplating entering the real estate market. Wilson said that rates have remained low for so long and they are no longer the determining factor they used to be.
“Nobody even seems to think of them anymore,” he said. Unless they rise, which some indicators are pointing to for the future. However, the bygone days of 8, 9 and even 10 percent interest rates are dim memories for most home buyers, with first-time buyers having no experience with higher rates.
Wilson cited the long-held real estate mantra that markets are always very localized, with pricing and sales figures markedly different even in areas in as close proximity as Fort Edward and Glens Falls.
He said he thinks the market has trended slowly away from the buyers’ market of six months or a year ago to a more balanced market. Buyers are better informed than ever before, thanks to the increasing accuracy of online real estate search engines.
“The interesting thing about the internet is that 10 years ago, it was the Wild West. You couldn’t trust the information about real estate,” he said. Over time, the data became more and more accurate.
The impact on real estate agents and brokers has made their jobs more challenging.
“Five years ago, when you listed a property, you might have to wait as much as a month before information about the listing got out to all the buyers. Today, it’s like moments. When you hit ‘activate’ on a new listing, the buyers know about it.”
Because of the accuracy of the internet, buyers are better informed than ever It is not unusual to activate a property and, within seconds, get a call from a broker wanting to schedule a showing. When a new listing hits the web, it is viewed by many potential buyers before they ever set foot inside the property.
One of the challenges Wilson sees is the failure of real estate agents to react quickly enough to the market.
“They’re still waiting to determine if they’ve over-priced a house,” he said. He said there doesn’t seem to be as much of a middle ground regarding how long it will take a house to sell. “You either get multiple offers or a buyer within seven days, or it seems to sit. There doesn’t seem to be anything in the middle.”
If buyers and sellers think the internet has made the job easier for real estate agents, they should think again. Wilson said that they have to work just as hard for commissions as transactions have become more complex and people tend to be more litigious than before.
The notion of real estate agents as a dispensable part of the equation is wrong, according to Wilson. He said the “value proposition” problem is the biggest thing agents are struggling with right now.
“The reason we are still in business is our expertise. You don’t know what you don’t know. Just ask people who try to sell on their own,” said Wilson.
As far as what is and isn’t selling, Wilson said a first-floor bedroom has become a very good thing to have. As in other markets, baby boomers in the region are looking to buy a long-term home where they can be comfortable into their twilight years.
Wilson said it feels like there are fewer first-time home buyers than in the past. He attributes that to a different outlook that millennials have on home buying. For many, he thinks their experiences with home ownership has been limited to bad things and they’re hesitant to jump into home ownership. Many had to grow up in families who lost homes during the recession and they are gun shy because of it.
Wilson said he does not think the wage issue is a big a factor in this region because costs are more affordable here. “We haven’t had those huge increases in home prices.”
He said the general trend in home values and prices has slowly shown signs of ticking upward in the last six months.
As for the average DOM (days on market). “We peaked at 130 back in the spring, but now it’s back down to around 80. That is about average, but you have to remember that Lake George can tend to skew things, with much higher priced lake homes taking longer to sell and increasing the DOM statistic.”
As for the “sweet spot,” the price range in which homes sell quickly, Wilson said that is also a little trickier to pinpoint because there is still an inventory of foreclosures in the region that drag down the average sale price.
“There’s not a lot of them left,” said Wilson, “but there are enough of them to affect other values.” He estimated that the sweet spot for the region is in the $200,000 range, with three bedrooms, ranches and even some newer homes being built.