The statistics from the last 12 months are good news for sellers who have been waiting to put their homes on the market. There has been a 3.5% increase in sales prices since June of 2012. This is further evidence that the market is recovering and stabilizing and now, improving on a regular basis. Over the last few months alone the increase is approximately 1.9 %.
There is one more reason why you might want to put y0ur home up for sale – if you have been waiting to see how things transpire before doing so: The interest rates for purchasing a home have also inched up. This means buyers are paying about 1% more for the mortgage loans they get. With loan rates in the 4% to 4.5% range, depending on the month or week, buyers have been a bit more anxious to pull the trigger, so to speak, and purchase.
There are also more re-sale buyers. Meaning, first time home buyers are no longer the bulk of the people in the buying pool. And yes, this means some people ARE jumping into the market and putting their homes up for sale.
More buyers would be buying (numbers have been down over the last month, due to it being August and no matter what year it is, August is slower because people are on vacation and also getting ready for school) except for the fact that inventory is still not good enough in many areas.
There used to be a good selection of homes to purchase in Lakewood, for example, in the 130k to 150k price range. Now, not so much. That’s just one example of a place where more homes would benefit the buyers currently looking. Why, you say, when many homes are still available in Lakewood, is there a need for more? Here’s why I picked that price point: Still not a ton of buyers in price ranges much higher than that. Also, homes under $120,000 usually need work and the trend of buyers wanting move in ready homes (except for painting or landscaping) has not abated. This is still what they want.
As I mentioned in my last post, the City Lift program with a $15,000 down payment gift is causing a lot of buyers to call us and ask us to help them find homes before the 12th of April so they can have their proverbial ducks in a row when they go to the City Lift event to apply for this program during that September week.
Just an update, hope you are all well this summer!