Now that the dust is settling on the announcement of IBM’s project in Dubuque (see previous posts here, here, here, & here), I thought I’d write a follow up about the impacts I’m already seeing. I’ve noticed decided changes in behavior by both our buyers & sellers in just the last week and a half.
Buyers who have been already in the market for some time, or those thinking about jumping in, are stepping a little faster these days. They see the incoming IBM workers, managers, and executives as a reason to hurry up and make a purchase decision, especially with still-historically-low interest rates available.
Private showings and open houses are definitely seeing more traffic. In fact, one of my open houses on Sunday at 2791 Oak Crest saw a headcount of approximately 25 visitors in an hour and a half. Our other open at 9043 Olde Davenport Road saw more visitors than in either of the previous open houses despite the day’s temperature hovering just above zero degrees.
For our sellers, I’m also seeing changes in behavior. Creating up to 1,300 now positions in a community will clearly impact the local housing market. Knowing these workers will be here in the upcoming months is changing sellers attitudes about their prospects for sale. Some Dubuque homebuilders have actually raised their listing prices on their spec (speculative) listings.
As a personal note, I was involved in a number of negotiations last week that demonstrated our sellers’ new resolve. In each case, the sellers were not as accommodating in negotiations as they had been even a few weeks ago (pre-IBM). That’s not to say sellers are demanding full list prices, but buyers should be aware that counter-offers will not be as generous as they have been in the last year or more.
Over the last year, MLS stats show that, on average, the greater Dubuque market gives up in negotiation 3.3% off the current listing price. In real terms, a home listed for $200,000, based on Dubuque averages, would expect to sell for approximately $193,400. Going forward, I expect that 3.3% figure to shrink as demand for housing strains the current available supply.
As with any post, your comments and questions are encouraged…