The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.4% over last year.
How will this impact buyers?
More inventory means more options. Lawrence Yun, NAR’s Chief Economist, explained this is good news for the housing market – especially for those looking to buy:
How will this impact sellers?
More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:
With an increase in competition, the seller may not enjoy these same benefits. As Chief Economist Nela Richardson, added:
If you are considering selling your house, you’ll want to beat this new competition to market to ensure you get the most attention for your listing and the best price. Contact us today!
Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.
Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.
Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.
That hasn’t happened this year.
Demand for housing has remained strong as mortgage rates have remained near historic lows. Even with the recent increase in rates, buyers are still able to lock in an affordable monthly payment. Many more buyers are jumping off the fence and into the market to secure a lower rate.
The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2017 all fell in April, May, or June.
Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.
If you are planning on selling your home in 2018, meet with The Glockler Group to evaluate the opportunities in your Chicago area market.
Definitely an aggressive headline. However, as the final data on the 2017 housing market rolls in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!
How did we finish 2017?
And Bloomberg Business just reported:
And the National Association of Realtors revealed that buyer traffic is stronger this winter than it was during the spring buying season last year.
The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 9.7% from the same time last year.
Thinking of buying or selling a home in Orland Park, Naperville, Homer Glen or the southwest and west suburbs?
Working with The Glockler Group makes all the difference. For more information, click here for a short video.
Home values have risen dramatically over the last twelve months. The latest Existing Home Sales Report from the National Association of Realtors puts the annual increase in the median existing-home price at 5.6%. CoreLogic, in their most recent Home Price Index Report, revealed that national home prices have increased by 6.7% year-over-year.
CoreLogic broke appreciation down ever further into four price ranges which gives a more detailed view than simply looking at the year-over-year increases of the national median home price.
The chart below shows the four tiers and each one’s growth from July 2016 to July 2017 (the latest data available).
It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor in determining how much it has appreciated over the course of the last year. Lower priced homes have appreciated at greater rates than homes at the upper ends of the spectrum, due to demand from first-time home buyers and baby boomers looking to downsize.
If you are planning on listing your home for sale in today’s market, find a local agent who can explain exactly what’s going on in your area and your price range.
Here are five reasons listing your home for sale this fall makes sense.
1. Demand Is Strong
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing inventory is still under the 6-month supply that is needed for a normal housing market.
This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.
Historically, the average number of years a homeowner stayed in their home was six, but that number has jumped to an average of almost nine years since 2008. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.
The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.
3. The Process Will Be Quicker
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 43 days, after seeing a 12-month high of 48 days in January.
4. There Will Never Be a Better Time to Move Up
If your next move will be into a premium or luxury home, now is the time to move-up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!
Prices are projected to appreciate by 5.0% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
5. It’s Time to Move on With Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.
That is what is important. Thinking of buying or selling? We truly know the local market. Call 708-529-5839 today!
The spring market is here – and our listings are selling in record time. Mortgage rates are low, buyers are out buying. If you are thinking of listing your property, aside from calling us ( we have a nationwide network and can help you find a real estate professional throughout the United States), you will probably want to spruce up your yard and the curb appeal of your home, given the extreme winter we (and most of the country) had.
– pull weeds ( there are various natural solutions that help: vinegar, dish soap/water mixture, etc.)
– water plants and greenery
– replace/freshen up mulch, if applicable
– trim bushes
– add grass seed to any sparse spots on the lawn
– seal coat your driveway if you have asphalt
– clean the inside and outside of your windows
Curb appeal is important…especially when listing your home. Let any potential buyer’s impression be a good one – showing that you care for your home. Better Homes and Gardens lists their “20 ways to add curb appeal” to your property.
(photo source: BHG)
If you really want to sell your home, either to downsize or purchase a bigger home, correctly pricing your property is very important and here is why:
1) Overprice your property – you help sell your competition… Buyers and their Agents are looking at a variety of properties, if not all in person, the possibility exists they are looking online, too. Experienced and knowledgeable Agents know the inventory and their clients do as well. Say they are looking at four properties one day, all four bedrooms in the same area, and yours is the highest priced. What now? The other properties seem like great deals compared to yours. The mentality of just listing it at your ideal price thinking the buyers can “throw you a lower offer” doesn’t really work. Start off marketing your property adequately by pricing it correctly – or chances are you will sit watching every. other. house. sell.
2) Search. Search and More Search…Buyers will most likely start their home search working with their Agent who will notify them of properties for sale within their (the buyers’) criteria. If a buyer only wants to spend, say, $450K, your overpriced home at $465,00 might not be included. Keep in mind, in addition to the MLS, the major real estate websites have filters such as maximum price. (again, by entering $450K, your $465K home may not be shown). Say your home really should be priced at $445K – don’t waste valuable market time by not going with your power pricing at the beginning. Plus, you will reach even more buyers – most buyers search in $25K or $50K increments. Homes for sale and homes that sold are on the Internet and in print. Purchase prices are no secret. Agents and buyers can spot an overpriced home quickly.
3) Buyers May Want to Make Updates… Sure you may love your home and feel it is worth X amount of money. However, it is important to remove the personal feelings for your home and move into a mindset of correct market positioning. Truth of the matter is no two buyers are the same, and while you may like features and finishes in your home, not all buyers might. They may want to make changes, which they are calculating as costing them even more $$.
4) Time is Money… Having your home priced higher than the competition not only deters buyers, but it may end up costing you more in the long run. Why risk valuable market time, which is noted on the MLS and online, by pricing higher than where you should be to “test the market?” It doesn’t work. You run the risk that, like noted first, you will sell the competition because those are perceived as such good deals, and then your listing may become stale and the numerous days on market may lead to buyers thinking something may be wrong. Keep in mind: it is not uncommon for some to sell for less many months or years later than what they could’ve just listed their property for in the beginning. If you truly want to move, it is very advantageous to start off right. All the marketing in the world can’t sell properties that are too high.
If you are not getting showings, or offers, it is either price or condition, so act accordingly.
Image courtesy of [image creator name] / FreeDigitalPhotos.net
Like this blog in general, this post is written by a licensed marketing director. This is solely information based on many years of experience in the business and fact. Any similarities are just that.