“Has the bottom in REAL ESTATE been reached yet?”

This is the question buyers and sellers (and Realtors too!) have been asking for months now. Though there are numerous way to measure market recovery, the National Association of Realtors (NAR) reported at the beginning of February that the Pending Home Sales Index rose 6.3% to 87.7 in December, up from 82.5 in December. While 5% doesn’t seem like a substantial increase, when coupled with the affordability index rise of 10.9% in December, these are strong signals of recovery. 

What does this mean to buyers? It means waiting to make a home purchase will likely not become any more economical than it is now, with rates at historic lows and still lots of inventory available. 

What does this mean to sellers? Since there is still a year of inventory (this is measured by the amount of sales every month, and based on current sales, how long it would take to exhaust the supply of homes on the market) it means your home has to be the BEST condition, with a competitive or slightly less than competitive price. What your neighbor’s home sold for 2 years ago is meaningless. “Market Value” means what a buyer is willing to pay.

 

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