In April of this year, pending home sales improved, slightly
according to the National Association of Realtors. Existing home sales for May will be available at the end of June.
The PHSI (Pending Home Sales Index) based on contract
signings (not closings) rose .3% from March to April. And the index is 10.3% above April 2012. In the Midwest, the index
rose 3.2% and is just over 15% higher than April 2012
Even better, 'because of inventory shortages, higher home
sales will push up home values to the highest level in five years' according to Lawrence Yun, chief economist for
the National Association of Realtors. The national median existing-home
price should increase close to 8 percent.
This year, total existing-home sales are expected to rise
just over 7 percent to about 5 million.
Coincidentally, the volume of existing home sales in 2001 fell within
the range of 5 to 5 1/2 million, which is considered normal for the
current
US population.
So, do you buy, sell or stay put?
Inventory. It's time to measure opportunities and
disadvantages. Chicago is right on target in having reduced inventory. Good properties, in great condition, and in
good locations are getting hard to come by.
As a result, we've been seeing
multiple offers on many properties. Some
buyers and buyer agents, of course, still believe that low-balling is going to
get them a great steal. Unless
a seller is extremely anxious, that "great steal" isn't
happening.
Pricing your home. Your home's value isn't always determined by
one that closed up the street or a floor above in your condo building. Pricing depends on many factors. And don't forget Econ 101,Supply and Demand Check out this minute video on Fair Market
Value. .
"Short
Sales" and "Foreclosures".
Yes, there are still a good number, but investors are snapping them up. Many investor groups are buying shorts and
foreclosures, rehabbing and putting them up for lease. When it becomes a total
seller's market, once again, they may put their rental cash cows back up for sale. If you move quickly with no
hesitation, you may be lucky and get a great
deal. But competing for these
properties, is not for sissies.
Decisive, aggressive offers with cash, get the deal closed.
Mortgages. Tough, tougher and toughest. Many sales today are the cash variety because
of the difficulty getting mortgage approval.
Your credit score, your assets, for the most part don't mean very much.
Earnings ratios are critical. But, considering that rising home prices
have not yet hit the highs we experienced just before the real estate crash,
property is still a bargain, particularly with the low mortgage rates. Rates that most assuredly will be heading up
as the economy continues to improve.
So, it's a great time to sell because of the reduced
inventory, low rates, and rising property values.
It's a great time to buy...if the right first or step up home is
available because pricing is still realistic and the borrowing rates are low. Remember just one interest point, can raise a
monthly payment several hundred
dollars.
It's a fine time to stay put, if you are happy with your
home size and your location. Rehabbing/remodeling
your home will only increase its value
in the next 3-5 years.
Look at every option before you make a decision. And if you decide that there is room for a
new home in your future or you want to market your home the today way--with
video, email me: lori@loriblackwell.com or lori@abcsofrealestate.com
