How times have changed. It seems like just yesterday that home buyers had multiple choices with the selection of homes to bid on and home sellers were ham-strung because there were so many options for buyers. As the bank owned and short sales have decreased in numbers and traditional sellers put off selling their properties, buyers were left with few opportunities to purchase a home. As the supply diminished and the demand escalated, home prices increased with multiple offers on nearly every home hitting the open market. Potential buyers were stunned with the reversal that has taken place in such a short period of time. What this changing market means for both buyer and seller.
Home Buyers: For those buyers hoping to buy at the bottom, unfortunately that ship has sailed. For the first month and a half of 2013 homes prices saw 10% to 20% increases in most communities. These numbers have been inflated due to the lack of inventory and the frenzy of buyers attempting to take advantage of the heightened mortgage rates and home prices. It’s highly unlikely that prices will stay at the level they are presently for the entire year, but a 5% increase by the end of the 2013 is very possible. Potential buyers can no longer procrastinate if they find a property to their liking. Most properties are receiving multiple offers quickly. Those that hesitate miss out.
Home Sellers: Those owners that have chosen to sell their home now have hit the jackpot. Who would have known for certain six months ago, that the inventory would have been this scarce. Our community in Davis, California has 40 total properties on the market and only 28 of those are single family properties. That number is near an all time low. Many homeowners have decided to hold off selling in hopes time will bring back some of the equity that was lost over the last few years. This strategy could backfire if mortgage rates continue their upward spiral and the economy takes another nose dive. Those owners that bought a home near the end of the peak should delay selling, but those owners that purchased before or at the start of the housing boom should now consider downsizing or moving into a larger home, depending on your family dynamics. No competition from other sellers makes this a prime opportunity for home owners. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.
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Preparing your home for sale is similar to that first date in high school, first impressions mean a lot. Just as that first date will determine the chances of a second date, the appeal of your home will determine the likelihood of a second look from buyers. Even though the market is steering back in favor of the seller, you should still use that first date theory. Todays buyers are no different from past buyers, the better located homes are still in high demand.
The limited supply has given many sellers a false sense of security. Not every home on the market is selling with multiple offers. There are still time-tested requirements that are necessary.
Curb Appeal: It’s amazing what a fresh coat of paint, a luscious green lawn and colorful plants will do for curb appeal. For the money strapped owner, it doesn’t take much money to throw down some fertilizer and plants yourself. A high pressure wash on the exterior of your home would at least wash away the layer of dirt that’s accumulated. The little amount of time required is well worth it.
Remove Clutter Inside: We are all susceptible to being a pack rat. Buyers want to visualize themselves in your home, removing clutter will enhance that possibility. Remove family portraits and as many framed pictures as possible. This tactic ensures the buyer spends more time viewing the home and less time looking at pictures. For those owners with lots of stuff, renting a storage facility is strongly advised. Having a home professionally cleaned is an extra bonus.
Home Improvements: A homes condition is a close second to location in the food chain of importance for home buyers. Adding new kitchen appliances and replacing cabinets and counters can give a kitchen that new home look. Pulling up the carpet and laying down laminate or hardwood floors improves the homes inside appeal and increases the value. Instead of a complete overhaul in the bathroom, replace the toilet, sink and flooring can do wonders and not cost a fortune.
Price It To Sell It: Every property is sellable at the right price. Regardless of the condition or location, there’s a buyer out there, as long as the price is right. The price should be based on the most recent comparable sales in the neighborhood. Even though prices are on the rise, buyers are very much aware of market values. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.
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As mortgage rates tick up and home prices make a positive ascension, home buyers and sellers alike are feeling torn between the wait and see attitude or making a move now. Both rising home prices and higher mortgage rates were inevitable as recent news reports would attest. Mortgage interest rates have crept up in three of the last four weeks and while big increases are unlikely, further drops are too. Home prices are also heading up due to a number of factors. The improving economy has been a huge influence with each increase.
While homeowners sift through the news of a housing market rebound, home buyers are anxiously waiting for more housing inventory to hit the market. That’s the dilemma both sectors now face. Current owners expectations that home prices will continue heading north are the main reason homeowners are delaying the sell of their current residence. Buyers on the other hand are attempting to take advantage of mortgage rates before they continue the upward trend.
The average for a 30-year fixed rate hit 3.53% this week, the first time rates have been above 3.5% in over three months. The rest of 2013 should see rates gradually rise, ending the year at 3.75% and then moving above 4% next year as the economy continues improving. Home prices are rising in all of California. Davis and Woodland are no exceptions. Statewide job growth and a balanced state budget are contributors to home price escalation and the expected increases for the future. How this news affects sellers and buyers are unknown, but here’s an opinion.
Affect on Sellers: It’s fairly obvious, sellers are banking on housing prices to continue moving up. This strategy is sound for the most part, but there’s a couple of concerns that owners need to consider. A high percentage of owners will sell and purchase a replacement home. A good portion of those sellers will buy a larger more expensive property. You might get more for your home, but you’ll also pay more for your replacement home. The other point of concern, if mortgage rates move higher that gives your home fewer buyers to choose from. Supply and demand at work.
Affect on Buyer: With the changing tide, most buyers have given up hope of finding their perfect home and have settled for the imperfect home. With the limited inventory, a home with flaws has become acceptable for the majority of prospects. The rise in rates and prices have created the buying frenzy that now exist. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.
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