Think You Can't Sell Your Home?
No one will tell you that today’s housing market has fully recovered, but there are positive changes underway, and they are happening rapidly!
You May Now Have Equity in Your Home
In the past 12 months, prices have rebounded at a remarkable pace. According to Case-Shiller Home Price Index, prices rose 11.8% year over year in February of 2013. This marked the biggest annual increase in prices since November of 2005, when the market was almost at its peak.
Why Have Home Prices Increased so Quickly?
Fewer Homeowners are Losing Their Homes
According to the National Association of Realtors, distressed home sales are at their lowest point since 2008, when the foreclosure crisis began. With fewer distressed properties available, they no longer have the intense effect on home prices that they once did.
Investors are Buying Again
The decline in housing prices have attracted investors in large numbers. Besides individual investors, large investment firms and hedge funds are buying up bundles of properties to take advantage of unprecedented opportunity. The result is a shortage of inventory, as large quantities of homes are taken off the market. This translates to stronger home prices.
Fewer Homes Have Been Built than Any Time in 50 Years
Normal supply and demand is about six months of inventory. Nationally, there is about 4.7 months of inventory available in today’s market. In some metropolitan areas, there is less than one month of inventory for sale!
More people want to buy homes today than any time in the past 5-6 years. Interest rates are at near-record lows.
The result is a simple supply and demand issue. There are fewer homes to sell and more people who want to buy them.
Today’s Market is a Seller’s Market
Do you know what your home is worth today? Or what homes in your area are selling for? With significant changes to the San Diego real estate market in recent months, it might be time for a reality check.
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.