There is good news for homeowners! “Good news”, you say, “Surely that is impossible!” However, you did, in fact, read that correctly. Since the 2008 recession, home values are reaching their highest levels yet. Prices are up on average 3.2% year over year in the northeast, 7% in the south, and over 12% in the west (According to figures from the National Association of REALTORS®).
Researchers from Zillow predict that prices in more than 1,000 U.S. cities could see their highest ever home values within the upcoming year. The losses of the recession have been, or are marginally close to being erased in nearly 20% of metro housing markets.
One of the largest reasons behind the nationwide higher home values is the lack of available inventory for homebuyers. Many home builders (Like us at JC Homes) are gradually getting back to speed with filing building permits for new home construction, which is causing many prospective homebuyers to demand for the properties currently available in their respective markets. Economically speaking, the over whelming demand for the restricted supply is driving up the pricing.
Potential homebuyers should get everything set to be as competitive as possible when making purchase offers during the busiest buying seasons: spring and summer. To aid themselves and stand out from those less committed and less qualifies buyers, these homebuyers should be flexible with closing dates & negotiation terms and ensure that they have really solid loan pre-approvals. Speaking with a loan originator beforehand will also nail down the exact home purchase price that homebuyers will be comfortable with when it comes to making monthly home loan payments.To make the process run at its highest efficiency, securing an experienced real estate professional to assist in the search and buying process is key, or find a custom home builder like us to help build your dream home. No competitiveness there.. It’s your home design and no one else’s!
The demand for housing and consequently, that impact, on existing home values and sales will continue to influence the nation’s economic health. Good thing flu season is over, eh?