Summer 2017 Housing Market Prediction: Hot… Very Hot
2017 home sales came out of the blocks strong in January; growing at its fastest rate since 2007. According to the National Association of Realtors®, houses were on the market for an average of just 50 days. In January of 2012, the average turn-around time was 99 days.
Optimism inserts money, primarily investor money, into the marketplace. When investors are optimistic and the stock market rises and shows stability, banks typically loosen their guidelines. Low interest rates, more forgiving mortgage guidelines, low and no down payment mortgage options and rent increases have put the housing market in gear, and it’s just starting to get heated.
Inventory remains the only issue as there is currently just a 3.6-month supply of inventory nationwide; which happens to be the lowest in history. That means if no new houses are listed, by May there would be no existing homes for sale in the market. I expect builders to be licking their chops and that’s a good thing for the housing market. When our country is building, it means people are confident in their futures. Business owners have positive expectations and employees are feeling comfortable with job security which is leading people to look at both new and existing homes. With rental prices increasing, millennials and other first time home buyers are taking advantage of low down and no down payment mortgages.
What about Sellers? Is it a good time to sell?
The simple law of supply and demand tells us that when there is more demand than supply, the value of sellers homes should rise right? Wrong with today’s sellers. Sellers today seem to think the market has reached its peak and prices will be declining. They are acting like we are in an economy on the decline, often taking the first reasonable offer and listing their homes for less than they should. This psychology perhaps is coming from the aftermath of the real estate meltdown as many people are satisfied with “getting out clean” or making very little on their real estate.
If you’re a buyer, you are in POLE POSITION right now; the market favors you. If you’re a seller, consider choosing a Real Estate Agent that properly educates you on real market trends and factual data; you may find that the sale of your home is more lucrative that you think!