If You Waited For Real Estate To Bottom Out...
January 14, 2013
If you are one of the folks who have been waiting for real estate prices to "bottom out", you may have missed it. We may be still close to the bottom, but the past three months have certainly seen the kind of activity that leads to the up-tick in home prices.
Inventory is at all time lows.
Home builders have not produced new homes. (In our market area it is almost impossible to find some new tracts under construction.)
Cash buyers have become willing to pay list price or even over list price when it is a multiple offer situation.
The good news for folks who are ready, willing and able to purchase a home is that the first two weeks of 2013 have seen an increase in new listings. The bad news is: you are not alone and you will not be able to negotiate price.
The other good news is that interest rates remain low. Lenders have money to lend and we are hopeful that they will see that the real estate market has turned a corner. The appraisers will need to look at pending sales to evaluate whether a property is worth what a buyer is willing to pay. The old adage that real estate value is determined by what a ready, willing and able buyer will pay to a seller who is not under pressure to sell.
A word to the folks who are ready to jump into this real estate market: Find a lender, complete a loan application and have a pre approval letter in hand as you begin your search. Without this piece of paper, many sellers will no longer consider your offer.
This week, the media said that 2013 is going to be a good year for real estate. For us in the business, every year is a good year. It is just that some are better than others.
If you are one of the folks who have been waiting for real estate prices to "bottom out", you may have missed it. We may be still close to the bottom, but the past three months have certainly seen the kind of activity that leads to the up-tick in home prices.
Inventory is at all time lows.
Home builders have not produced new homes. (In our market area it is almost impossible to find some new tracts under construction.)
Cash buyers have become willing to pay list price or even over list price when it is a multiple offer situation.
The good news for folks who are ready, willing and able to purchase a home is that the first two weeks of 2013 have seen an increase in new listings. The bad news is: you are not alone and you will not be able to negotiate price.
The other good news is that interest rates remain low. Lenders have money to lend and we are hopeful that they will see that the real estate market has turned a corner. The appraisers will need to look at pending sales to evaluate whether a property is worth what a buyer is willing to pay. The old adage that real estate value is determined by what a ready, willing and able buyer will pay to a seller who is not under pressure to sell.
A word to the folks who are ready to jump into this real estate market: Find a lender, complete a loan application and have a pre approval letter in hand as you begin your search. Without this piece of paper, many sellers will no longer consider your offer.
This week, the media said that 2013 is going to be a good year for real estate. For us in the business, every year is a good year. It is just that some are better than others.
posted by shirley harry at 8:44 AM
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