Housing Market Expected to "Spring Forward" This Year

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market. Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right. Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions. That hasn’t happened this year. Demand for housing has remained strong as mortgage rates have remained near historic lows. Even with the recent increase in rates, buyers are still able to lock in an affordable monthly payment. Many more buyers are jumping off the fence and into the market to secure a lower rate. The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2017 all fell in April, May, or June. Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months. Bottom Line If you are planning on selling your home in 2018, let’s get together to evaluate the opportunities in our market. You might also enjoy reading… Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling! 2 Major Myths Holding Back Home Buyers Should I Wait Until Next Year to Buy? Or Buy Now? [INFOGRAPHIC] The #1 Reason to Sell Now Before Spring

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4 Reasons to Sell This Spring [INFOGRAPHIC]

Some Highlights: Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available! Housing inventory is still under the 6-month supply needed to sustain a normal housing market. Perhaps the time has come for you and your family to move on and start living the life you desire. You might also enjoy reading… Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling! The #1 Reason to Sell Now Before Spring 2 Major Myths Holding Back Home Buyers Mortgage Rates on FIRE! Home Prices Up in Smoke?

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Are Home Values Really Overinflated?

Last week, the National Association of Realtors (NAR) released their most recent Existing Home Sales Report. According to the report: “The median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January’s price increase marks the 71st straight month of year-over-year gains.” Seventy-one consecutive months of price increases may have some concerned that current home values may be overinflated. However, at the same time, Zillow issued a press release which revealed: “If the housing bubble and bust had not happened, and home values had instead appreciated at a steady pace, the median home value would be higher than its current value.” Here are two graphs that help show why home prices are exactly where they should be. The first graph shows actual median home sales prices from 2000 through 2017. By itself, this graph could heighten concerns as it shows home values rose in the early 2000s, came tumbling down and are now headed up again. It gives the feel of a rollercoaster ride that is about to take another turn downward. However, if we also include where prices would naturally be, had there not been a boom & bust, we see a different story. The blue bars on this graph represent where prices would be if they had increased by the normal annual appreciation rate (3.6%). By adding 3.6% to the actual 2000 price and repeating that for each subsequent year, we can see that prices were overvalued during the boom, undervalued during the bust, and a little bit LOWER than where they should be right now. Bottom Line Based on historic appreciation levels, we should be very comfortable that current home values are not overinflated. You might also enjoy reading… Mortgage Rates on FIRE! Home Prices Up in Smoke? Top 5 Reasons to Hire a Real Estate Professional When Buying or Selling! Should I Wait Until Next Year to Buy? Or Buy Now? [INFOGRAPHIC] 80% of Renters Believe Homeownership is a Part of Their American Dream

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