Are Home Buyers Being Priced Out of the Market?

 

 

Are home buyers being priced out of the market?

The answer to this question depends a lot on where you live. All real estate is local. In many markets, homes have seen a 10+% increase in value in the last year. Many homeowners, in severely impacted markets, that were “under water” (meaning that they owed more than the home is worth) are seeing a return to having some equity in their homes.

Click here for an excellent article from “Money Talks News” about this very subject.

Here in my local market – which is mainly the inner-loop neighborhoods of Houston – the issue of inventory is causing more problems than pricing.  We currently have approximately 2.6 months of inventory.  This means that if no more homes came up for sale, then the current number of homes available would be sold out in 2.6 months.  An inventory of six months is considered a stable market, meaning that the market is neither a “buyers market” or a  “sellers market”.  The average months inventory for the US is 3.5 months, so the lack of inventory is a nationwide issue.

Click here for the March 2014 real estate stats for Houston.

Single Family

The good news for home sellers is that if you are considering selling your home, and if you don’t get greedy and you price it right, you will most likely get top dollar and possibly multiple offers.

The good news for home buyers is that interest rates are still historically low.  The days of interest rates in the 3’s are gone, but even rates in the high 4’s is still considered excellent when compared to rates from the past (remember 19% anyone?).

30 year mortgage rates 1910-2010

The bad news for both buyers and sellers is the lack of inventory.

What are your thoughts?

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3 Trends that Could Influence Housing Inventory in 2014.

housing-inventory-2014-influencing-factors-home-prices-equity-new-homes

Inventory, or rather lack thereof, has been a big issue in many markets across the country. This has been especially true in Houston as well, where inventory is at historic lows.

Here is a great article about what we might possibly see happen with inventory in 2014.

3 Trends That Could Influence Housing Inventory in 2014 – from Houston Agent Magazine.

What are your thoughts?

 

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Can You Do Anything to Prevent Identity Theft? | Money Talks News

Identity theft is a growing issue in our wired society.

Here are some great tips from “Money Talks News” about how you can protect yourself, your money, and your credit.

Can You Do Anything to Prevent Identity Theft? | Money Talks News.

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Can you afford a medium price home in your city?

Can you afford a medium priced home in your city?

Click here to read a great article from “MoneyTalk News”  that has the medium price of homes in 25 major cities, and the income needed to purchase that home.

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I Can Haz Real Estate? The home buying process in Memes!

How to Buy a House – As Told by Real Estate Memes

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Houston home sales break all-time record: 2013 was beyond a good year – CultureMap Houston

This great article from “CultureMap Houston”  is good news and bad news.

Houston home sales break all-time record: 2013 was beyond a good year – CultureMap Houston.

The good news is that homes sales – and prices – in Houston are soaring.  The bad news is that inventory is at an all time low, which means that buyers are having a hard time buying.  Multiple offers, homes selling for more than asking price, and all cash offers are common. This is most especially true in the more popular neighborhoods.  

The predictions seem to be that the pace of sales can’t, and won’t, last forever. BUT – the price increases will most likely continue, just at a lower pace, for some time to come.

What does this mean for the average buyer and seller?

For sellers, it means that you will get a great price for your home right now.

For buyers, it means that you should expect to pay full asking price (or more) for properly priced homes, and expect to be competing with other buyers at the same time.

The rising prices and low inventory also means that sellers that are moving up (or down as the case may be) will have the same issues because they will now be buyers.

The current historically low interest rates are also another consideration as well.  Rates are slowly creeping up and up.

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These 8 Tax Breaks Are About to Expire | Money Talks News

Grab them while you can!

These 8 Tax Breaks Are About to Expire | Money Talks News.

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