If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned about the concept of supply and demand, so we understand that the best time to sell something is when the supply of that item is low and demand for that item is high. That defines today’s real estate market.
Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:
“Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity.”
Yun goes on to say:
“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies.
As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.
And I’ll help you find it. Call Linda at 407-925-7721 Cell or Text
4716 Rosewood Drive, Orlando, FL 32806
Enjoy resort living at home! Exceptional estate encompasses spectacular vistas, gardens, trees and sweeping lawns. Minutes to town, schools and public boat ramp, the sun-filled, residence has been completely and masterfully renovated to the highest standards. Characterized by beautifully proportioned rooms, high ceilings, magnificent architectural detail and extraordinary craftsmanship, this remarkable home offers amenities for a contemporary lifestyle while retaining the original ambiance and timeless elegance. Highlighted by one-inch wood floors, a foyer hall introduces nearly 3,000 sf of warmly welcoming interiors. Large windows flank the rear of the living room thereby ensuring a light-filled interior and sweeping views of the magnificent backyard pool. This home is the very definition of a place perfect for entertaining. An adjacent home office/den includes a floor to ceiling built in bookcases with trim and leads to the expansive backyard and rear patio with one of the prettiest pools I have witnessed. The stylish dining room is a showcase for the gourmet cook who has easy access to a charming kitchen and adjacent great room. The kitchen is open and inviting and cements the fact that this is a home for the kind of family or person who enjoys entertaining. The charming eat-in nook overlooks the front lawn and the kitchen features an amazing showcase pantry for your most exquisite china or pottery. The closets in this house will astound you with another pantry, two huge master closets and most rooms with walk in closets. The owners retreat offers HUGE closets and a sitting area along with a bathroom retreat featuring a soaking tub and a two-person shower. The fourth bedroom does not have an actual built in closet but has always been used as a working bedroom. This is truly a one-of-a-kind home and I promise you will not believe the amenities. While the home’s shell was built in the late 1950’s the entire house was gutted and reconfigured by former owners who were architects. The seller loves this home but a corporate transfer requires their move to Colorado so this is a great opportunity for the next buyer. Close walk to the public boat ramp for this neighborhood to the beautiful Conway chain of lakes. Finally, the new Pershing K-8 school will be completed in 2019 thus adding additional value to this home located on a private road. What an amazing value!
For many Americans, buying their first home is their first taste of achieving part of the American Dream. There is a sense of pride that comes along with owning your own home and building your family’s wealth through your monthly mortgage payment.
It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it’s ok to admit that your home no longer fits your needs!
According to CoreLogic’s latest Home Price Index, prices in the starter home market have appreciated faster than any other category over the last year, at 9.4%. At the same time, inventory in this category has dropped 14.2%.
These two stats are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.
This is great news if you own a starter home and are looking to move up to a larger home as the equity in your home has risen as prices have gone up. Even better is the fact that there is a large pool of buyers out there searching for your starter home to help them achieve their American Dream!
If you have outgrown your starter home, call me so I can explain the market conditions in your area and help you find your next home! My cell phone is 407-925-7721.
Will home values continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as:
“The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”
When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.
Here are the numbers for supply and demand as compared to last year since the beginning of 2018:
The increase in the June numbers doesn’t mean that prices won’t continue to appreciate. In that same report, Lawrence Yun, NAR’s Chief Economist, explained:
“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.
Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”
The reason home prices are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.
Let’s work together to make you a happy homeowner! Call me at 407-925-7721