Savvy sellers who waited it out are now finally choosing to list their properties. It is certainly good timing, considering all of the positive news coming out of the U.S. housing market these days.
The Home Price Index, or HPI, was up in 47 states by the end of 2013’s second quarter. Even with interest rates up a bit, it is becoming more apparent that buying a home is still a smart move! As the second quarter of 2013 came to a close, home appreciation rates continued to fare well. The number of distressed listings has fallen significantly, inventories of existing, traditional property listings are low, which is increasing demand and driving prices up even more. And if that was not enough good news, the National Association of Home Builders reported that “builder confidence” was up in August!
In the Washington, DC housing market, which is one of the nation’s fastest appreciating, business is booming! A recent program on the popular Washington FM radio station, WTOP 103.5, featured local Realtor, Ron Sitrin of Long and Foster Realty. He observed that so far in the capital city, the housing market has performed more like it would in the spring, with anxious sellers busily listing their properties. He reflected that the enticement is rapidly appreciating home prices. That, in turn can have a snowball effect for entire neighborhoods. He also explained that, “They were underwater and as prices have continued to go up, many of those sellers are finally getting an opportunity to sell because they now have enough equity in their homes to do so.”
The increased number of listings is creating more interest among prospective buyers because just a few months ago, the number of existing listings to choose from was much smaller. Sitrin acknowledged that with more homes on the market, sellers should not have a hard time moving their properties. He stated, “As long as it’s priced right, this is still a sellers’ market and it’s going to sell.”
More listings to choose from also prevents buyers from feeling pushed into a corner or desperate that they won’t be able to find the right house for the best price. When there is ample inventory, bidding wars are also less likely! That being said, prospective sellers should be at the top of their game to get their asking price and sell their home quickly.
Another factor that should guarantee the current state of affairs prevails, is the fact that children of Baby Boomers, known as “Echo Boomers,” are waiting in the wings to become homeowners. According to a Harvard University study, the children of Baby Boomers are entering their peak home buying years. They range in age from 25 to 44 and boast 5 million more members than their parent’s generation had in the 1970s. The Harvard researchers explained, “The echo boomers will help keep demand strong for the next 10 years and beyond.” Although some of this demand may flow into the rental market, the preferred tax treatment of mortgage loans should keep the American infatuation with home ownership as popular as ever.