The real estate market has certainly turned the corner. With sales up to levels we have not seen since 2007, affordable prices and record low interest rates, the real estate market is nourishing the overall economic recovery. But the one obstacle we are challenged with now is the lack of active listing inventory, and this inventory shortage may actually stall our recovery. The National Association of Realtors reports that we currently have a 4.4 month supply of inventory. This is down two points from a year ago and nearing levels in 2005 from the midst of the housing boom.
This low inventory may be good for prices and sellers may be holding off listing until prices go up so they can net more on their sale. But this may actually cost more in the long run. Yes, sellers may net a little more on their sale as prices increase, but they will now have to pay more for their new home. Basically, sell for a lower price - buy for a lower price, sell for a high price – buy for a high price. Even with the low interest rates if your principle loan value is greater, your mortgage will also be greater. Factor this by the term of the mortgage and this can easily eat away any monies made by waiting for a higher selling price. The best time to sell a home is when buyers are active and buying.
Click here for more on this inventory shortage posted by the KCM Blog and a link to the National Association of Realtors on Existing Home Sales Report.
If you or someone you know have been waiting for the right time to sell a home . . . contact me and we can discuss. Out of Washington State - No worries; I have associates all over the country who can help.
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