What a beautiful weekend after the fog wore off! We set up a lot of showings this weekend as well and got 8 properties pending! Typically over the last five years in our area January is a non active month in closed home sales. I think we may be breaking this tradition!
Today I will be busy getting feedback from agents who haven’t provided it yet and also finding new buyers for our homes. Below there is some good news for a change
You may wonder is this a good time to sell or should I wait until the prices go up?
With all the news one has to read between the lines for the answer to this question. There are two questions that first need an answer. Number one :If price go up in the next few years will they go up to make a substantial difference in my bottom line?
The answer is this: If home prices increase .5%-3% at the most per year that would equate on a $250,000 home $2500 at 1%. This is the most likely percent increase we will see in the next few years. One has to remember that the next home they are buying will also be increasing the same amount.
The second question and maybe more important is this: If interest rates increase even slightly will that affect my buying power? The answer is yes it may completely eliminate any gain you would see in sale price.
So the answer to the first question is that there may be no better time to sell or to purchase than now!
Here is some of the good news I was talking about!
Chart: How Rent Became More Expensive Than Mortgage Payments — Business Insider
The sweetest music to our ears!
“Housing Starts surged by 12.1% in December to 954,000 units on an annualized basis. This was above expectations and the highest level since June 2008. Building Permits, a sign of future construction, also increased, coming in slightly higher than the November reading.
In addition, research firm CoreLogic reported that home prices rose by 7.4% in the year ended in November. This figure, which includes the sales of distressed properties, was the largest year-over-year increase since 2006 and it has been positive for nine straight months. Also, the Obama Administration’s December Housing Report showed that home prices had solid annual gains for the year ended in October, with the Federal Housing Finance Agency (FHFA) and Case-Shiller housing price indices up 5.6% percent and 4.3%, respectively, from one year ago.
It’s also important to note that RealtyTrac’s year-end 2012 foreclosure report showed that foreclosure activity increased in 25 states. However, median home prices also increased in 25 states, which pulled 1.6 million homeowners out of negative equity in 2012.
So what’s the takeaway? Goldman Sachs has reported that the fundamentals are pointing towards larger gains for housing prices in the next couple of years. And with home loan rates remaining near record lows, great opportunities are available (From Stuart Brown WVB graph included).”
Have a great and glorious week!
PS If you know anyone who needs to buy, sell or invest in Real Estate have them give me a call we can help them and maybe they know someone who is looking for your home!
PSS Do not forget to look at the pendings and solds for the week!! It is not an automatic report!