Homes ‘On Sale’ Across the Country [INFOGRAPHIC] Posted: 29 Mar 2013 04:00 AM PDT Prices are increasing but are still ‘on sale’ throughout most of the country when compared to 2007 prices. – The KCM Crew Source: FNC March Price Index |
Should Your Buyers Increase Their Offer? Posted: 28 Mar 2013 04:00 AM PDT Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented? Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:
HOUSING INVENTORYA normal real estate market has between 5-6 months worth of inventory. Over the last several years, the inventory of homes for sale had skyrocketed to 10 months. Most buyers in almost any price range had a multitude of houses to choose from. Today, the national month’s supply of inventory has fallen below five months. In many markets, there is not enough housing inventory to satisfy the current demand.Conclusion: If the buyer loses the house they are bidding on, there is no guarantee they will find a similar home anytime soon. HOME PRICESBecausemof the limited inventory, home prices are again appreciating. The Case Shiller Pricing Index revealed that house prices rose by 6.8% in 2012. Experts are projecting home prices to increase by 5% to 8% in 2013.Conclusion: If the buyer doesn’t get this house, there is a good likelihood that a similar home will cost more in the future. MORTGAGE RATESThe ‘cost’ of a home to a buyer is determined by the price of the house and the expense associated with the financing. Mortgage rates are projected to inch up in 2013. In a recent forecast, the Mortgage Bankers Association predicted that rates could climb as high as 4.3% by the end of the year.Conclusion: If interest rates do inch up, the ‘cost’ of the next home could be impacted significantly. Bottom LineIf a buyer truly loves the house they are bidding on, it probably makes sense to raise their bid now instead of waiting for another dream house to appear. |
Money Magazine: The Real Estate Market is Back
Posted: 18 Mar 2013 04:00 AM PDT
Last Friday, we ran an InfoGraphic from RealEstate.com that showed that the real estate market was coming back. Some objected that the information was from a survey of industry players that may have a natural bias. For the doubters, here is the cover of the latest edition of Money Magazine released this past weekend.
The magazine supported their case by explaining:
It seems that even the unbiased realize that Housing is Back!
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