There will be homes for sale.
Judging by the volume of calls I’ve received in the last 10 days, I think there will be good homes on the market this fall. Not a tidal wave, but more than we’ve had all year.
Most people sell homes for normal life reasons. Life transitions like new jobs, marriages and kids are big motivators for buying and selling a home.
Since the economic downturn, many have elected to change the way they live rather than where they live. Dad commutes further, kids share a bedroom, divorced people still co-habitat. These lifestyle adjustments were less painful than the real or perceived loss if they sold their home at the bottom of the market.
For many, that situation has changed.
Home Values are Up
March and February were astonishing months for home sales in Glendale,and the effect on price is now clear. Our median price rose 15% from April 2013, May 2013. Average price increase is similar and price per square foot rose 11%.
This is the largest one month appreciation in value in the last 2 years. Our current values are similar to values near the beginning of 2004. And, for perspective, the “bubble” exploded mid 2005 and bottomed out in 2011. Of course, one month’s numbers do not make a trend, but I think many homeowners are feeling optimistic.
Here’s the Reason
Many homeowners selling today will lose money on their current home- but it is a much smaller loss than it would have been last year. I think we are at a group tipping point where the values haven risen just enough, and the interest rates are still low enough, that many see an opportunity to jump to the next house NOW.
That is exciting news for everyone.
Move down buyers are able to recoup much of the equity lost and move out of the area or move to a more convenient lifestyle. Move up buyers will finally have something to move up to and first time buyers? Well, it appears the investor craziness is slowing down, just a tad. Perhaps normal people who do not have huge bank accounts will be able to compete for those adorable entry level homes.
Happiness, homes and love all the way around.
How much equity have you gained?
Perhaps you knew things were better, but had not thought about your homes’ current value. It is time to call your trusted real estate professional (ahem- that should be me, right?) and ask some pointed questions. Your number of attractive options might surprise you!