Inventory of homes for sale is well below historic norms and buyer demand remains high.
Lawrence Yun, Chief Economist at the National Association of Realtors, commented, “Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.” When inventory shrinks, available homes become more valuable. This defines today’s real estate market and is good news for sellers.
While multiple offers were common this spring, there are signs that the frenzy is slowing down. As we approach the end of summer, sellers still hold a significant negotiating advantage in many price ranges over factors such as price, inspection, appraisal and financing contingencies. If you‘ve been considering selling your house, you may not want to wait any longer.
For all of the facts about what is happening in your neighborhood, contact a Reinhart Realtor today.
May statistics from the Ann Arbor Area Board of Realtors show the lack of adequate supply of new listings is driving prices upward versus the same time last year.
538 new residential listings came on the market in May, compared to 639 in May a year ago. This led to an increase in listing and sale prices. The average list price for May 2017 was $320,853 which is a 7.2 percent increase from last year. The average sale price increased 8.5 percent to $320,360.
School has started. Leaves are changing colors. The holidays are coming. This is the perfect time to sell your house. With inventory below historic numbers and demand still strong, don’t miss out on this opportunity to sell your home.
1. Demand Is Strong
The latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. With fewer homes for sale, buyers have fewer to choose from. This creates an increased demand for available homes. Buyers are ready and are looking for a home right now. Take advantage of the buyer activity currently in the market.
2. There Is Less Competition
If you have been waiting to sell your home, consider acting now. According to NAR, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market.
This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.
New construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017. Listing before the wave of new construction homes hits the market can put your home in a more favorable competitive position and result in a higher price.
The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.
3. The Process Will Be Quicker Right now, there are fewer real estate transactions than there will be in the spring. This means a quicker process for the loans to process, and the house to get inspected. As the market heats up, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker and simpler.
4. Mortgage Rates are Still Low
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you thousands more in both down payment and mortgage payment if you wait.
According to Freddie Mac’s latest report, you can also lock-in your 30-year housing expense with an interest rate around 3.46% right now. Interest rates are projected to increase over the next 12 months. Even a small increase in rate will have a big impact on your housing cost.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. You have the power to take control of the situation by putting your home on the market. If you are on the fence about moving this fall, please contact us. We’d be happy to learn about your goals and how we can help you start living the life you desire.
Listing are in short supply. Now is a good time to sell. If you’ve been waiting to sell your home, consider acting now instead of putting it off until spring. Buyers are already out there looking.
Attendance at open houses is very high right now because there isn’t as much inventory to see. Listing before the spring wave homes hit the market can put your home in a more favorable competitive position and result in a higher price. Also, interest rates continue to be favorable to buyers, but are expected to rise gradually in 2015.
Think about moving up your selling plans. Market forces are working in your favor.
For sound advice and help creating your real estate plan, contact us.
Third quarter results are in, and they are outstanding! Reinhart finished the third quarter strong with closed sales up 13% for the first 3 quarters of year versus the same period in 2012.
The good news for homeowners in Washtenaw County is that prices are continuing to climb and homes are selling 22 days faster on average than last year. The Ann Arbor Area Board of Realtors is reporting that average sales prices YTD for residential homes are up across all major areas of the county.
Many industry experts feel fall is the best time to list because low inventory creates upward pressure on prices and fall buyers are serious.
For sound advice and help creating your real estate plan, contact us today.
The local spring real estate market has already hit a pace not seen in many years, if ever. Many new listings have been besieged with showings and multiple offers, driving sale prices upward. At Reinhart, the average sale price of closed properties first quarter was up 26%. This is due, in part, to the re-emergence of activity in the over $500,000 segment of the market.
New construction is also rebounding and may be a viable option for your next home.
In this fast-paced market having the right Realtor is more important than ever. The professionals at Reinhart are successfully navigating these waters better than anyone else in Washtenaw County.
For sound advice and help creating your real estate plan, contact us today.
Moving can be challenging and expensive. Watch out for these moving mistakes that could cost you!
Not Making a Plan
Whether you are moving across the country or across Washtenaw County, moving takes a lot of work and planning. To alleviate the stress of last minute planning and packing, create a schedule with a moving checklist. Real Simple has a great moving checklist.
Moving Things You No Longer Need
Not only do you waste money moving things you no longer need, you also waste time and energy. Before you begin packing, get rid of everything you don’t use or won’t need in your new home. Habitat for Humanity of Huron Valley’s ReStore is a great place to donate what you no longer need.
Packing Poorly Safely and securely pack your belongings. Invest in quality boxes, specifically designed for moving to ensure that your belongs will be safe. Be sure to accurately label boxes to save time when you are unpacking. Don’t wait until the last minute; begin by packing a few boxes a day so the process isn’t so overwhelming.
> Click here for 9 tips for packing up a household.
Hiring the Wrong Moving Company
A quality moving company can save you time, as well as the stress and energy of moving on your own.