Evaluating a complete housing recovery this early in the year would be akin to complimenting a chef before the meal is served. Sure the food might sound good on the menu, but the true evaluation won’t come until the product has been tested. The accolades should be suppressed until after the summer months, when a true barometer of the recovery can be gauged. Most neighborhoods throughout the country are experiencing a revival of sorts, but just like the chef comparison a lengthy sample is necessary before we proclaim a housing market comeback.
If the first three months of pending sales are an indication, then we have rebounded nicely from the doldrums that besieged the housing market over the last few years. This is assuming those homes now pending move into sold status and home buyers continue purchasing properties at a brisk pace throughout 2012. A few factors that should keep the market churning along are mortgage lenders being more flexible with the loan approval process, stability of mortgage rates and the seemingly leveling of housing prices.
Home sellers have a big say in whether we continue the turnaround or plunge back into the abyss. By pricing their home competitively from the start, will help keep buyers active and aggressive. The limited inventory has kept many prospective home buyers on the fence waiting for the right home. Communities with a high number of short sales and bank-owned homes have benefited most from the increased activity. Homeowners have to be cognizant of those properties when deciding on a price for their home. Buyers are still looking for good value.
Many owners breathe a sigh of relief when they have an accepted contract, but that’s putting the carriage before the horse, it’s not a time to celebrate. There are an enumerable amount of issues that can arise that might alter the agreement. An unknown defect found during the inspection phase, loan difficulties for the buyer, property appraisals are just a few problems that can emerge during the pending stage that can quickly dissolve the deal. That’s one of the major differences between this cycle and the boom years. The chances were slim to none back in those days for a buyer to cancel a contract, it’s become more common today when disputes can’t be resolved for a home to easily go from pending to back on the market. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.