Is this the Time to Sell?

Some housing experts are concerned that the housing recovery seems to be stalling. Some are blaming the one percent increase in mortgage interest rates since the first quarter of last year. Others are pointing at an economy that is improving but only at a snail’s pace. Still, others are questioning whether homeownership is even considered by some to still be part of the American Dream.

However, there is great evidence that the true reason home sales aren’t stronger is because we lack inventory in the vast majority of markets across the country.

 

 

Here are a few reasons why we believe this to be true:

Buyers Are Searching the Internet for Homes in Record Numbers

Trulia, a major online residential real estate site for home buyers that lists properties for sale, recently reported that it is experiencing record levels of traffic as the spring buying season kicks into high gear. The site reached a record number of unique visitors in April with nearly 50 million.

Buyers Are Physically Out Shopping

The number of potential home buyers physically looking at homes is increasing. The National Association of Realtors (NAR) measures this each month in a data point they call “foot traffic”. Foot traffic measures the number of homes being shown by agents. That number has increased for each of the last three months and has doubled over that period of time.

Inventory Levels are BELOW Historic Norms

History shows us that a balanced real estate market requires a six month supply of available housing inventory. We have not reached that mark in over two years. Though inventory numbers are improving, the recent increase in buyers now looking will again put a strain on this number.

Bottom Line

While inventory levels remain below historic norms, it will remain a seller’s market. This being the case, if you are considering selling your home, now may be the time to list it for sale.

Courtesy: Keeping Current Matters

New Homes Get Costlier to Build – Is this good news for sellers?

According to a new report by the National Association of Home Builders, construction costs for single family homes are at the highest levels since 1998. Lumber prices jumped 40 percent between April 2011 and April 2013.

What does that mean for you, the seller?

That’s actually good news. Typically, resale home prices trail new construction prices. So if new homes cost more, your home price will also go up.

Is this a good time to sell your home? Here are some facts:

1.      Interest rates are rising – today’s rate is 4.375% (from Wells Fargo) as opposed to 3.77% in January 2013. Which means that for a given monthly mortgage payment, buyers will have to settle for slightly smaller homes or with less features.

2.      There are fewer homes on the market as compared to previous years.

3.      We are seeing more and more boomerang buyers. These are people who went into foreclosures or bankruptcy 3 – 5 years ago and are back in the market to buy homes.

In the last 3 years, homeowners have tried to sell their homes but could not get the price they wanted. This spring may get you a better price.

Do you need a new market analysis? Call me at 803-348-9922 or email me at vsashikant@gmail.com for a FREE market analysis.

 

For... All Real Estate Matters!

 

 

5 Reasons Why You Should Sell Your House Now

Many now realize that it is a great time to buy a home.  It might also be an opportune time to sell your house.  Here are the five reasons we believe now may be a perfect time to put your house on the market.

1. Demand Is High

The most recent Existing Home Sales Reports by the National Association of Realtors (NAR) show a double digit percent increase in sales year-over year; sales have remained above last year’s levels for over 25 months.  There are buyers out there right now and they are serious about purchasing.

2. Supply Is Beginning to Increase

Total housing inventory is again approaching historic norms of a 5 month supply compared with 4.3 months in January.  Many expect inventory to continue to rise as 3.2 million homeowners escaped the shackles of negative equity in the last 12 months and an additional 1.9 million are expected to enter positive equity in the next 12 months.  Selling now while demand is high and before supply increases may garner you your best price.

3. New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block.  As the market is recovering, more and more builders are jumping back in.  These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4. Interest Rates Will Again Rise

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year.  The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by this time next year.
Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5. It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting.  Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked.  You have the power to take back control of your situation by putting the house on the market today.  The time may have come for you and your family to move on and start living the life you desire.  That is what is truly important.

Courtesy: KeepingCurrentMatters.com