In today's market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers. Here are five of those reasons: 1. There Are Too Many People to Negotiate With Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner: The buyer who wants … [Read more...]
Home Sales Up Year-Over-Year
Some Highlights This is the 48th consecutive month with year-over-year price gains. Lawrence Yun, NAR's Chief Economist says that, "The main issue continues to be a supply & affordability problem. Finding the right property at an affordable price is burdening many potential buyers." Inventory is still below historic normals at a 4.4 month supply. … [Read more...]
91.5% of Homes in the US have Positive Equity
CoreLogic’s latest Equity Report revealed that one million borrowers regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties would regain equity if home prices rose another 5% this year. The study also revealed: 95% of homes valued over $200,000 now have a positive equity position 87% of homes valued under $200,000 have entered a positive position The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit … [Read more...]
3 Charts That Scream ‘List Your Home Today’
In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise. SUPPLY The National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market. DEMAND Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As seen in the … [Read more...]
Lack of Inventory Challenging Many Housing Markets
Going into the 2016 spring market, the biggest challenge the real estate industry has is the lack of available housing inventory for sale. Here are a few experts and their thoughts on the subject: David Crowe, Chief Economist for the National Association of Home Builders: “Many sellers may not have an absolute decision as to whether to buy an existing home or a new home. So the low inventory of existing homes is locking them in place.” Ralph McLaughlin, Chief Economist with Trulia: “We are in a … [Read more...]
The Main Reason to Use a Real Estate Professional when Selling your House
Every homeowner hopes to accomplish five goals when selling their home: Sell it for the best price Sell it within a predetermined time Sell it with the least amount of hassles Close on the sale the same day they move into their new home The fifth reason is the most obvious and the most important: They want to make sure it sells. In order to dramatically increase the chances that the house sells, a homeowner should list with a real estate professional in their market. Why? Because agents have access to the vast … [Read more...]
Gap Between Homeowner’s & Appraiser’s Opinions Widen
In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. One major challenge in such a market is the bank appraisal. If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank. Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an … [Read more...]
What If I Wait Until Next Year To Buy A Home?
As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home. Let us explain. There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase … [Read more...]
The Difference An Hour Makes This Spring [INFOGRAPHIC]
Some Highlights: Sunday, March 13th, we "Spring Forward" one hour for Daylight Savings Time (except for our friends in AZ). Every hour in the United States, 624 homes will sell and 118 homes will regain positive equity. The median home value will also increase each hour in the United States by $1.84. … [Read more...]
Yes, Home Prices Are Rising. No, a New Housing Bubble is NOT Forming
We recently reported that home prices are continuing to rise across most of the nation. This has created concern in some pundits that a housing bubble, like we saw ten years ago, is forming again. We want to explain why these concerns are unfounded. The current increase in home values can be easily explained by the theory of supply and demand. Right now, the number of families looking to purchase a home is greater than the supply of homes on the market. Here is a chart that explains how the months’ supply of … [Read more...]
