People often ask me if now is a good time to sell. The answer is really dependant on personal circumstances, but for the most part right now is the best time to sell that I've seen in the past 5 years.
In the previous two post, I covered the aspects of the shrinking existing inventory and pent up buyer demand is actually spilling over and creating a lack of existing homes on the market.
Today we'll talk a little about a recent KCM blog that outlined why new construction homes will be your new competition. Please see the article here.
Here are a few points from the recent article:
- Single-family authorizations in February were at a rate of 600,000.
- This is 25.5% above February 2012.
HOUSING UNDER CONSTRUCTION
- Single-family housing starts in February were at a rate of 618,000.
- This is 18.5% above February 2012.
- Single-family housing completions in February were at a rate of 574,000.
- This is 32.9% above February 2012.
As we mentioned, new construction can be strong competition to a seller of an existing home. It may make sense to list your home before this new inventory makes its way to market. Give me a call to see if selling now makes sense for you. Thank you, Jerry
Last week I was interviewed by KPQ radio for the business beat talking about the health of the real estate industry in the Wenatchee Valley. Pacific Appraisal Associates prepares and publishes a monthly snap shot report showing how the market is compared to the same month in the previous year.
This report shows a vast improvement in the local housing market. See the most recent Snap Shot Report here.
The number of homes sold and the actual dollar volume has increased significantly when compared to April 2012. It also shows that the number of new listings is decreasing and that will eventually lead to a slow down of sales.
In another post, I've been talking about the lack of inventory nationwide and how 2013 will be a great year to try to sell your home. Low interest rates and low inventory equate to the best seller's market that we've seen for several years. Don't miss your chance if you're thinking about selling – now is a great time.
When you're ready to sell your property give me a call and lets talk about how my experience and marketing plan can help you achieve your real estate goals.
Across the country housing inventory levels are dropping like a rock. According to the National Association of Realtors, the average housing inventory is below a 5 month supply, this is 20% below the levels of just one year ago. Please read the KCM Blog about this info here.
Here in the Wenatchee Valley, the same thing is true with extremely low levels in all price ranges under $500,000. With the exception of the price range from $350,000 to 400,000, all other value ranges are showing less then a 4 month supply on the market.
While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:
1-4 months’ supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
5-6 months’ supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
7-8 months’ supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.
Now is the best time to sell since 2005 according to KCM, and I have to agree.
Call me when you're ready to make a move, I'll put my experience to work for you.
It's an exciting time in real estate! According to the National Association of Realtors, sales in February were up the second highest they've been in the last three years. But the problem is finding inventory. As the economy recovers, buyers are snapping up inventory and according to NAR chief economist Lawrence Yun, that limited inventory is holding back the market in many areas.
According to Yun, the sure fire way to alleviate this shortage is to build new homes.
"Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels," he said. "Most local home builders are small businesses and simply don't have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market."
That could bode very well for our local market indeed.
Check out the full article on the NAR website here and watch this video commentary from Mr. Yun about supply constraints slowing pending sales in the Western market.