Inventory shortages will be a big concern for buyers going into home shopping season. There’s a lot of demand from homebuyers, and a low supply of homes available to buy to soak it up. In fact, there are 2.6 percent fewer homes for sale this year than last year and what is for sale is selling fast.
According to Redfin, a real estate brokerage, “Nearly 15 percent of all homes listed for sale in February were off the market within two weeks, up from 11.7 percent last year.” This is the fastest February market Redfin has recorded since it began tracking in 2010.
The result of the two is pushing home prices higher and reducing the confidence of renters who think home buying may be out of reach. According to Lawrence Yun, chief economist for the National Association of Realtors, “These factors are giving many renter households a pause about it being a good time to buy, even as their job prospects improve and wages grow. Unless there’s a significant boost in supply levels this spring, these constraints will, unfortunately, slow or delay some prospective buyers’ pursuit of purchasing a home.”
That being said, if you’re thinking about buying a home this year, arm yourself with cash, patience and be prepared for battle in many housing markets. You may also need to up the price you’ll actually pay well beyond your planned budget. If you don’t have cash then contact us for some ways we can put you ahead of the pack!
Home buyers in 2017 are facing fears like, bidding wars driving up the price of their dream home, losing the “earnest money” they put down when they signed a contract or becoming “house poor,” that is, unable to afford amenities like a meal out in order to make the mortgage payment.
On the other hand, if you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.
The Certo Team 55 N. Arizona Place Suite #103 Chandler, AZ 85225 602-429-6789
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