Spring has sprung and with it the busiest time of the year for real estate activity. Early forecasts from March pointed to trends that were shaping up for this year’s high season. Two months later, we are seeing signs that signal prime opportunities for many potential homebuyers and sellers.
Here are three reasons to act now if you are in the market for a home this year.
1. Tighter inventory is fueling price gains
With an average inventory level of 4.7 months, there are fewer properties to choose from, resulting in multiple offer situations and bidding wars. Lack of inventory may be frustrating for buyers now, but the classic supply and demand cycle is having a positive effect on housing prices and thus can serve to continue the momentum of the housing recovery. NAR and Fannie Mae are forecasting between a 5 and 7.5 percent increases in median sales prices this year so entering the market now could get you a sweet deal.
2. Conventional sales are outpacing distressed sales
For many years, distressed properties negatively impacted prices but as fewer distressed properties make up the inventory mix, a more realistic pricing environment is emerging, one that serves to instill greater confidence in local market conditions. The brighter pricing picture may be just what many people need to feel comfortable in getting off the fence. And as prices increase, more people who are underwater will be able to consider putting their home on the market. If you have been underwater, get a current picture of your equity position by asking a real estate professional for a CMA. If you are looking to buy, get your finances in order now to be able to take advantage of these homes as soon as they come on the market.
3. Continuing challenges in getting financing
Credit scores continue to be the sticky wicket for many would be homebuyers, but with time comes the eventual repair of consumer credit history and the ability to secure a loan. As unemployment continues to drop, aspiring homebuyers will be in a better position to save for a down payment, paving the way to a mortgage loan for which they can qualify.
We are well on the road to a housing recovery – if you are in the market for a home, don’t ignore the signs! http://www.owningthefence.com