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.