If you are debating listing your house for sale this year, here is the No. 1 reason not to wait!
Buyer Demand Continues to Outpace the Supply of Homes For Sale
The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage:
“While feedback from REALTORS® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”
The latest Existing Home SalesReport shows that there is currently a 5.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below November 2014 numbers.
The chart below details the year-over-year inventory shortages experienced in 2015:
Anything less than a six-month supply is considered a “Seller’s Market”.
Bottom Line
Meet with a local real estate professional who can show you the supply conditions in your neighborhood and assist you in gaining access to the buyers who are ready, willing and able to buy now. For more information, please contact The Olear Team today!
Existing home sales rose to an annual rate of 5.47 million, representing an 11% increase year-over-year.
Inventory levels remain below the six-month supply needed for a normal market at a 4.0-month supply.
Lawrence Yun,NAR’s chief economist, warns:“The spring buying season is right around the corner and current supply levels aren’t even close to what’s needed to accommodate the subsequent growth in housing demand.”
For more information, please contact The Olear Team today!
Finally, the issue of homeownership has become a platform talking point in this year’s presidential debate. Recently, one of the candidates running for President spoke out about the importance of homeownership in America.
Hillary Clinton detailed a new economic agenda yesterday. In announcing her new agenda, she remarked:
“Homeownership is about more than just owning a home. It is about putting roots down in a community with better schools, safer streets and good jobs. And it is about building wealth, as homeowners build equity in their home one mortgage payment at a time…We must make sure that everyone has a fair shot at homeownership.”
This post isn’t political!
It doesn’t matter that it was Clinton who said it first. It doesn’t matter that she is a Democrat.
What matters is that EVERY candidate for our country’s highest office realizes the important role homeownership plays in the development of our nation.
The fact that homeownership was finally brought to the forefront of the debate is great news – no matter which way you lean politically.
For more information, please contact The Olear Team today!
In a recent post, Trulia examined whether homeownership was again being seen by adults in the U.S. as a “part of their personal American Dream.” Over the last five years:
The percentage of U.S. adults who believe homeownership is part of their American Dream increased from 70% to 75%
The percentage of 18-34 year-olds who believe homeownership is part of their American Dream increased from 65% to 80%
Here is a graph of the survey over the last five years:
Bottom Line
As the housing industry recovers from the crisis of 2008-2010, Americans belief in homeownership as part of their own personal American Dream has also made a strong comeback. For more information, please contact The Olear Team today!
Now that the market has showed signs of recovery, some sellers may be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional.
Real estate agents are trained and experienced in negotiation. In most cases, the seller is not. The seller must realize their ability to negotiate will determine whether they can get the best deal for themselves and their family.
Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:
The buyer who wants the best deal possible
The buyer’s agent who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always find some problems with the house.
The termite company if there are challenges
The buyer’s lender if the structure of the mortgage requires the sellers’ participation
The appraiser if there is a question of value
The title company if there are challenges with certificates of occupancy (CO) or other permits
The town or municipality if you need to get the COs permits mentioned above
The buyer’s buyer in case there are challenges on the house your buyer is selling
Your bank in the case of a short sale
Bottom Line
The percentage of sellers who have hired a real estate agent to sell their home has increased steadily over the last 20 years. Meet with a professional in your local market to see the difference they can make in easing the process. For more information, please contact The Olear Team today!
