Posts Tagged as market conditions

Trying to Break into the Luxury Home Real Estate Business?

It’s Been Confirmed, It’s a Seller’s Market

Fistfights breaking out at your brokerage over the possibility of gaining a listing? Just in case the dog-eat-dog listing races and woeful number of affordable homes on the market for buyers weren’t enough of a confirmation of real estate trends, Trulia and statistics have finally confirmed: It’s a seller’s market.

Strongest Seller’s Market Ever
Brand-new spring housing market numbers have confirmed the trend, looking to statistics from the country’s 100 largest metro cities. Boiling the trends down by zip code, it uncovered a shortage of homes nationwide – a deficiency that hasn’t been this bad in 20 years.

Inventory for March is down 6.6% from a year ago, and unsold inventory a 3.8 month supply. (A balanced market is a 5-6 month supply.) This has led to monthly rises in home prices, up nationally 5.7% for February, year-over-year.

Slim Pickins
As buyers frantically search for affordable homes, the market is getting increasingly competitive, with first time buyers experiencing the greatest hardship. Even as more homes enter the market for the popular summer sales season, they’re flying off neighborhood shelves fast. And at entry-level, where demand is greatest, sellers remain firmly in the driver’s seat.

Heavy Competition
There’s no shortage of people on the lookout for a new home. And though people prefer a home that’s move-in ready over one they have to upgrade, its concession-time in a market where bidding wars are par for the course. Sellers are optimistically pricing their homes – and most are selling anyway.

To compete, buyers are dropping contingencies and coming in with cash. Multiple offers are the new norm. Worse, real estate trends of home appraisals regularly coming in well below sales price are dropping a wrench in the works for would-be first-time, mortgage-dependent buyers.

What are you doing to rise above the competition in today’s seller-centric market? Stand out with the tools and technology of Properties Online today.

Real Estate Market Update

Is now finally the time to buy a house? In many ways, and in many local markets, the answer seems to be a resounding yes. Home values in many markets have plummeted back to 2003 levels, fixed mortgage rates are near record lows, and the much anticipated economic recovery seems to be underway.

While now is generally a good time to enter the real estate market, unemployment rates are still high, and obviously it doesn’t make sense to take a mortgage unless you’re fairly certain that you are not going to be laid off. So the question of how secure your job is becomes a major factor.

In addition, it’s important to realize that although the housing bubble has burst in most US markets, there are still some local bubbles around the nation, so if you reside in one of them, it may still be prudent to keep waiting. A good way to determine whether your local real estate market is still in a bubble is to look at the rent ratio – the higher it is, the more cautious you should be.

The bottom line: the housing market is not detached from underlying economic factors such as growth in jobs, growth in output and rising consumer confidence. Watch for those, as well as for the rent ratio in your community, and take into account the stability of your own job. All of these factors should be considered before you decide whether now is a good time to enter the real estate market. From where we are, all of these numbers look positive – but the ultimate decision should of course be yours and based on your individual situation.