This holiday season I’m celebrating the landscape of today’s housing market. Good news for divorcing couples that were previously “underwater” with their real estate and it makes my job as a housing planner easier to come up with solutions for my client’s housing transitions.
Our research team at Teles Properties has poured through the data and crunched the numbers to give you an edge in this dynamic real estate market. We have compiled the Top 7 reasons why now may be a great time to consider selling a home.
- Shifting Unprecedented Demand
- Significant Price Appreciation
- Low Mortgage Rates
- Higher Negotiated Sales Price
- Changing Inventory Landscape
- Improving Distressed Market
- Cues from Renters
A Seller’s market is defined as one in which there are fewer than 6 months of inventory on the market. Sellers have more pricing power since there is a higher demand for available properties. This number has changed from 4.5 in June to 5.3 in September, and it is quickly adjusting and the sellers may only have a distinct short-term advantage.
Even with recent volatility in the interest rates, we are currently experiencing some of the lowest mortgage rates in history. New legislation that goes into effect in 2014 may dramatically change the financing vehicles that are available.
Sellers have strategic control over price as they are making approximately 95% of the original asking price. This is up from 90% in August 2011.
Inventory levels remain low from a traditional market perspective but since Q1 2013 there has been a 31% increase in active inventory. Overall, inventory still feels “tight”, but this is changing quickly and sellers have a unique short-term advantage while the market self-calibrates.
Over 2.5 million distressed properties return to positive equity in Q2 2013, primarily driven by price appreciation. We predict that this will begin to contribute to the active inventory pool and may start to put downward pressure on the rate of price appreciation.
Significant price appreciation often creates short-term dislocation between rents (YoY+9.6%) and home prices (YoY+36%). Many buyers are switching to renting as the cost of renting relative to the price of the property makes renting seem more attractive, which should be a big clue to homeowners regarding the relatively higher value of their homes.
If you’re seriously considering selling, these 7 reasons may help you finalize your decision. Call me if you’d like to discuss your specific situation.