Market Watch
Normally in January’s Market Watch I try to compare
results from the past two years. Although I may mention a few comparisons, the
overriding message in this Market Watch is pretty simple – if you are
considering selling your house list it now! There are several reasons I feel so
strongly about this.
First, nationally the inventory of existing homes
for sale is at its lowest number since 2001. Locally our inventory is at its
lowest level since January of 2006. Many sellers thinking about selling wait
until April or May to list their homes, thinking that is when the selling season
starts. Based on my experience, the spring selling season begins on Super Bowl
Sunday! Last year in the four month February to May time period we sold exactly
33% of the homes that were sold over the course of the entire year. Waiting to
list your home doesn’t make it more likely to sell, it just costs time. As more
homes come on the market the competition increases so take advantage of buyers
who are looking now.
Second, prices are up. The National Association of
Realtors reports that nationally median home prices are up 10.1% from a year ago
and through November prices increased for the ninth consecutive month, the
longest streak since 2006. Locally our median price increased 4.3% from last
year and I am confident that the median price will continue to rise this
year.
Shadow inventory (homes 90 days delinquent, homes in
foreclosure, and homes already owned by lenders) continues to decline. Although
it is impossible to know exactly how many homes meet these criteria, virtually
all experts agree that the number has declined significantly. Although there
will continue to be some of these homes listed the number will be significantly
less than in recent years, creating less competition for normal home sellers and
less competition means higher prices.
Fourth, rental rates and occupancy continue to
increase making homeownership more affordable in many cases, than renting. This
coupled with increased consumer confidence in the housing industry, an increased
desire nationally to own a home and increasing household formation all combine
to generate more buyers.
If you or anyone you know is considering selling their
home why wouldn’t they list it with the company that has been helping buyers and
sellers for over 100 years and the company with the absolute best website for
shoppers looking to buy in our area? Please visit FCTuckerEmge.com or better yet
call me today. Let’s get started now.
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