The Truth Big Media Won't Say About Real Estate
We can all agree that the last 5 or 6 years has been a pretty chaotic time. First came the peak of the housing bubble, followed by its inevitable crash. Millions of homeowners found themselves on the brink of foreclosure, and others found themselves with few options until the market recovered. Understandably, many homeowners checked out and stopped considering a move at all.
While the media love to report on the state of the real estate market, they stop short of telling the whole story. The truth is for the first time in years, now is a good time to sell your home.
Consider recent stories in the news, and then look at ‘the rest of the story’.
1. Prices Are Increasing
No story has been covered more than this one: Prices are increasing at a rapid rate. There are more buyers in the real estate market than there are homes for them to buy. Supply and Demand.
See this chart from CoreLogic Home Price Index, and compare real estate prices now with those before the original housing bubble burst. They may not continue the accelerated pace of the past year, but this is a trend not to be overlooked.
2. Interest Rates
Another big story this year has been interest rates. Before the crash of the housing market, we were all pretty happy with 6-7% rates, weren’t we? In 2012, interest rates hit historic lows, yet are inching up as the market recovers. Some of the more recent news stories suggest that increasing rates will scare off potential home buyers. Again, this isn’t the whole story.
Interest rates are still very low, when you look at the big picture. Even as recently as 2010, interest rates were over 5%. Today’s interest rates are allowing more home buyers into the market than at any point in more than 40 years.
3. Are We in a New Housing Bubble?
With prices increasing at an impressive rate, interest rates down, and inventory in short supply, one of the most popular stories lately asks whether we are in another bubble about to burst. We know the media love nothing more than drama. The facts show that the real estate market is now recovering from an historic crash from which there was nowhere to go but up. While it is unlikely these trends will continue in the dramatic fashion of the past year, there are many positive signs for homeowners who can now be in control of their future.
If you have been waiting to sell your home, you’ll benefit by exploring your options. Your home may well be worth more than you realize. The first step is to find the value of your home in today’s real estate market.
It’s more important than ever to get current data regarding the salability and price of your home, if you are thinking of making a move. Let us know if you want a current estimate of value for your home or investment property. We’re here to help.