Our sellers and buyers are running into multiple offers every which way we turn!
Why? Inventory has dropped like a ROCK! Sellers values are on the rise and if you are underwater you may be able to sell closer in the future than you previously thought. We are at the lowest levels of inventory over last 13 yrs!
Basic supply and demand is that the lack of inventory raises demand, which raises values. A normal/balanced real estate market has 5-6 months of inventory. Below 5 months of inventory becomes a sellers market and above 6 months is a buyers market. A few local statistics are as follows: Aurora is currently at 5.4 months, Oswego at 6.8 months, Naperville 5.6 months and Plainfield 5.3 months just to name a few.
Let’s talk practical advise based on this current market place dynamic…
Sellers– If you are looking to sell your home it may not be long before you can sell and not be under water. If you are looking to upgrade this could be your last chance to get the deal on the buy side as prices rise and rates are still low. Expected home price increases are showing a greater expectation of values than they were predicting just a couple months ago.
Buyers – Mortgage rates are expected to go up to 4.4% by the end of 2013. They are currently some of the lowest rates historically. That 1% increase makes a over $110 per month difference on a $200k purchase. Between that and the low inventory (that is increasing house prices) now is perfect to buy and get back in the housing market and to the days of building equity.
Do you have more questions ? Or want to talk about how this specifically can help your situation please just give us a call.
Nicole & Tony