Thinking of Selling? FreddieMac Backed by Law of Supply & Demand Says Do it NOW...so does EXIT Realty All Pro
Economics can be complicated but the basic rule that is the foundation of our consumer-driven economy is simple: Supply & Demand. When demand is high for a product and the inventory of that product is scarce, it drives the price of that product UP. If you have been shopping for a home recently, you have likely seen that homes that meet all your criteria (location, price and condition) are in much shorter supply than last spring...and when those homes do come to market, you are bumping into others shopping for the same one. Boy, do those "good ones" sell fast these days, right?
It's commonplace now for EXIT Realty All Pro agents to field multiple offers for our Seller Clients and we put our skills to work when representing our Buyer Clients during competitive negotiations.
Our friends at Keeping Current Matters explained the current state of the market very clearly here...
In a recent blog post, FreddieMac explained that “housing is stronger today than at any point since the Great Recession began and hit bottom in 2009”. They then gave three reasons which support their position:
- Home sales are up 13% since their low point.
- Housing starts are up 50% since they bottomed out.
- House Prices are up 16% since their trough.
Projections Going Forward
FreddieMac also believes that the market will continue to improve through 2014. They projected:
- Home sales to increase about 3% in 2014 as the purchase market continues to evolve
- Almost 20% growth for housing starts in 2014, which will begin to help ease tight inventories in many markets
- Home value increases will continue their positive momentum in 2014
Frank Nothaft, Freddie Mac vice president and chief economist, further explained what the housing market may look like in the agency’s April 2014 U.S. Economic and Housing Market Outlook:
"Tight inventory may pose a significant challenge for home buyers in many markets across the country, which may result in higher home prices and sales being lower than expected. This is good news for those markets that have room to run on the house price appreciation front, but it's also going to increase the affordability pinch in many markets, especially along the country's east and west coasts. Two indicators that are supporting local housing activity are rising consumer confidence and declining unemployment rates."
The real estate market is improving every day. The biggest challenge is a lack of inventory in many markets. If you are thinking about selling, now may be the time to make the move.
If you are thinking of buying a home, it's your time now, too, before interest rates and home prices rise, compromising your purchasing power...then you can reap the reward of improving real estate values as a homeowner sooner!
If you have a real estate need, the professionals at Exit Realty All Pro will fullfill it for you. Whether buying, selling, renting or even if you just have a question, consider Exit Realty All Pro your best real estate resource.
Exit Realty All Pro. Taking Long Island Real Estate to New Heights.