CNN’s latest report indicates that housing market prices have risen in the past quarter by 3.6%.
3.6% is certainly not a double digit recovery or the hefty 10%+ yearly gains investors flipped properties at during the heady days of flipping. If you’re like most home owners, you’re probably heaving a big sigh of relief at the wonderful news of no more negative drops in your home’s value.
What does this mean for a first time home buyer? It means that inventory levels will be shifting into a crucial pattern that Realtors can confirm. Spring of 2012 was the first time in almost 5 years that I saw a “nearly normal” selling pattern return to the residential housing market. I fully expect 2013 to show the same pattern, with a new average listing time of 6 months or less, when appropriately priced. This means that pre approved home buyers are ready and willing to purchase a home and remove it from the active market in under 6 months’ time. This is great for inventory and for home prices, but not so wonderful if you’re sitting on the fence debating a purchase. Multiple offers have returned to the market place, especially for short sales and REO’s, where cash is king. For mortgages, the low rates have increased the number of interested buyers, so there is a bit more competition out there for quality homes.
It may take several more years, but a full housing recovery is already underway!
What is “appropriately priced”? Ask your local Realtor for comparables in your neighborhood of recently sold properties that are similiar to size and age to your home.
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