On average homeowners will sell their home about every seven years. Each sellers situation is different, some transfers are due to a job relocation or empty-nesters looking at downsizing, growing families needing more space or the unfortunate economically induced short sale or foreclosure. No matter the reason, timing is everything. David Crowe chief economist with the National Association of Home Builders predicts a U.S. housing market turnaround beginning this year, building toward a solid recovery in 2013. The good news continues with the latest unemployment numbers standing at 8.3% and a drop in the number of Americans seeking jobless benefits to 2008 levels. There’s enthusiasm on Wall Street where stock prices for home builders have jumped 20% to 134% since August even though housing starts are expected to only rise 15% to 20% this year.
With all this encouraging news on the home front, why are so many traditional sellers (not short sales or foreclosures) hesitant and apprehensive about the prospects of selling their home in 2012, especially with the recent home buyer activity since the beginning of the year. Everything being fairly equal, buyers much prefer negotiating with a seller rather than a bank. Any homeowner that bought a home in the last six years, the hesitancy is understandable with so much home depreciation during that time. For those owners that purchased back in the early 2000’s or before, home values more than doubled in some markets and this includes the downturn that began in 2006. For instance, Davis, California’s average sales price in 2000 was $265,734 and the sales price in 2011 stood at $477,000, that’s an astounding 79.45% increase in that span of time.
For those homeowners that were fortunate enough to have bought a home and lived through the housing boom, where home prices jumped from 10% to 15% a year for a six consecutive years, the downturn has caused many families to hold on to their home for the immediate future in hopes the market will change directions. The days of yearly double-digit appreciation are long-gone. When the housing market fully recovers, normal year-to-year appreciation will be in the range of 2%.
Some sellers have taken advantage of the limited amount of inventory and have successfully gotten their home sold for a decent price and in a timely fashion. Home buyers have confidently migrated back to the market and this has increased the need for more properly priced houses. For those homeowners that have chosen to hibernate and delayed the process of selling their home, now could be the right time. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my other informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.