New Opportunities for Sellers!
The past five years have been tough on home sellers. With the high number of listings and declining prices, it’s been a “buyers market” for some time now. Well, now there is good news for those of you who’ve wanted to move but have been holding off in fear your home won’t sell first! There has been a dramatic change in the real estate market that now favors sellers (especially those waiting to buy a new home).
Many homebuyers have entered the market in the past twelve months, and some are frustrated by what they consider to be a lack of good choices. There has been a noticeable decline in the number of houses for sale and more buyers are discovering it harder than they thought it would be to find a suitable home. As a result, prices are rising, and yes, even multiple offers are becoming more common. This presents a tremendous opportunity for those who have been waiting to sell their present home.
Why this change?
Pent up demand
During the economic downturn many people held off on creating a new household, even though their life circumstances would have normally prompted a move. The recession and its after-effects seemed to last forever, yet our lives went on. People married, others divorced. Babies were born every day and kids started school. Generation Y graduated college. Boomers retired. Under normal economic conditions, these life events would have initiated moves. But the economy and declining real estate market made many people hesitant to invest in housing. Well, now the economy is forging ahead — it’s been growing (more slowly than we would have liked) since 2009. The real estate market hit bottom in 2011 and has been trending upward ever since. Today, most people believe “this is real,” and consumer confidence continues to rise.
Our particular market area did not experience foreclosures and distressed sales to a great extent, so these were much less an issue here than in other parts of the country. Nevertheless, strong foreclosure activity elsewhere put downward pressure on prices in our real estate market. Now, many sellers who were under water in their mortgage payments have refinanced and rising home prices are helping many homeowners regain lost equity. As a result, there are fewer foreclosures in the pipeline. This is great news for those property owners and our real estate market.
During and after the recession, economic uncertainty caused many people to rent rather than buy. The demand for rentals increased, so rental rates rose. Now, many renters believe buying costs less than renting, and they see the long-term value of owning a home.
Take Advantage and Sell today! Contact us and we would be happy to assist you!
Read the full report by Lawrence F Flick, IV, Chairman and Chief Executive Officer of Prudential Fox & Roach, Realtors® and The Trident Group.