Housing Market Rebound

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© 2014 Charfen Institute All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.

HOUSING MARKET REBOUNDWhy there’s never been a better time to sell your home!

2013 was a remarkable year for the United States

real estate market. While the we saw small

improvements in housing over recent years, in

2013 the market rebounded much faster than

anyone predicted. Now, as we head into 2014,

many homeowners are looking at the surging

market and wondering, “Is now the time to sell?”

When the housing crisis hit, many homeowners

who wanted to sell their home found themselves

unable to do so. For some, the bottoming-out of the

housing market meant losing all of the equity they

had gained in the house. Millions of other

homeowners found themselves underwater on

their mortgages, owing more on their home than it

was worth.

Unable to sell their homes, many homeowners

waited for the market to improve. However, after

years of bad news, many homeowners gave up or

simply tuned out. If you or someone you know

found yourself in this situation, now may be the

time to reassess. In 2013, the real estate market

shifted to favor sellers. More buyers, low

inventory, and fewer distressed properties all led

to dramatic increases in home prices.

If you, like so many others, have been waiting to sell

your home, now may be the perfect time. Let’s take

a closer look at the reasons why.

Home Sale Prices Are Up

According to the CoreLogic Case-Shiller Indexes

Report, home prices increased 11% from

December 2013 to December 2012. What’s more,

December was the 22nd consecutive month of

year-over-year home price increases!

If you look at the graph below, you can see just how

far housing prices have come since the 2008 low.

Provided by:Jo Ann OutlandOutland, Inc.1092 E Grand Ave, Suite A, Arroyo Grande, CA 93420(805) [email protected]://central-coast-short-sale-information.com/00646902

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The steep, double-digit increase in home sale

prices is tremendous news for homeowners across

the board. Whether you’ve been underwater on

your mortgage or waiting for the market to

rebound, the market is much healthier than you

likely realize.

And, for many distressed homeowners, the market

rebound means having equity for the first time in

years.

Fewer Foreclosure and Short Sales

As mentioned earlier, the housing market crash left

millions underwater on their mortgages. Being

“underwater” means owing more on a mortgage

than the home is worth. At the same time, the US

economy struggled, and many homeowners

experienced financial hardship as well. Unable to

make mortgage payments and underwater on their

homes, millions suddenly faced foreclosure.

Following the crash, the number of distressed and

foreclosed homes dragged home prices down

across the country. However, as the housing

market has improved, more and more of these

distressed properties have sold while fewer homes

are becoming distressed.

The shrinking number of distressed properties is

contributing to the increase in home sale prices,

allowing homeowners to ask more for their homes.

More People Buying, but Housing Inventory still Low

Today, home affordability is near record highs. As

the housing market has recovered, interest rates

have remained low, making buying a home

accessible to more and more people. In fact,

according to the same CoreLogic report, the ratio

of median mortgage payment to median family

income was near a 40-year low in December 2013.

This means mortages are as affordable as they've

been in 40 years.

Yet while more people are buying homes, there are

fewer homes available. In general, the real estate

market needs about six months of inventory in

order to keep up with normal supply and demand.

However, at the end of December 2013, there was

only a 4.6-month supply nationally, and in some

markets, there is much less.

The increase in buyers coupled with low inventory

is driving prices up and putting power in the hands

of home sellers. The result is a seller’s market in

which homeowners selling their homes are able to

ask for more and more for their homes. For

distressed homeowners, this may mean finally

escaping an unmanageable mortgage!


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It’s a Seller’s Market… For Now!

“Last year, home prices rose 11 percent, the highest rate of annual increase since 2005… We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014.”

- Dr. Mark Fleming,

Chief Economist for CoreLogic

Right now, real estate market conditions favor

homeowners looking to sell their homes. However,

as more homeowners become aware of the recent

improvements in the housing market, more and

more are expected to sell their homes. As the

amount of homes for sale increases in 2014, sellers

will lose some of the power they can command in

current market conditions.

If you have been waiting to sell your home,

consider acting quickly to take advantage of the

hugely favorable market conditions for sellers.

Do you know what your home is worth today?

What are the homes in your area going for?

Chances are, the answers to these questions have

changed dramatically over the last year. Now is the

time to reevaluate your situation and explore your

options.

The bottom line is this:

If you have been waiting to sell your home, now is the time to explore your

options!

Contact me today for a free valuation of your home! I’ll help you find the best option for you.


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Housing Market Rebound

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