Springtime
has always been about selling houses with April, May, June, and July accounting
for 40% of all housing transactions annually. The recovery statistics have
consumers feeling optimistic about the housing market the shift is toward a
sellers market. This means that this year's spring and summertime buyers
will be facing a very different landscape than those from only a year or two
ago. According to Forbes magazine, here are "4 Essential Things
You Need To Know About The 2013 Spring Home Buying Season:"
Inventory
Shortages:
The number of available
homes has plunged to record lows, thanks to both an abnormally small supply of
existing homes for sale and a dearth of new construction. Coupled with the brisk pace
of sales, there is currently 4.7-month supply of existing homes on the market
(a six-month supply is considered healthy), according to the National
Association of Realtors. That’s nearly 20% less nationally that during
this time last year, and in the most sought-after markets levels are down by as
much as 50%, 60%.
Increased
Competition:
In addition to a
dwindling supply of available homes, the number of buyers has surged. What does
this mean? That you the prospective buyer need to be prepared to move fast if you find
a property you’d like to buy. Buyers need to be patient because many will be
outbid by others and might have to bid on multiple homes. It also means
thinking hard about the tradeoff: what you need to have in your home and what
you are willing to bend on because with tight inventory and lots of
competition, it will be a temptation to take what you can get.
Cash is still
King:
Given the steep
competition, all cash buyers who can close a deal relatively quickly offers a
great incentive to sellers. Cash is always best when there are multiple bids
from a Seller's view because it as seen as a deal with fewer hiccups. Over the
past few years mortgage lending has become incredibly tight, but lenders are
slowly making it easier to get approved. All in all, cash is still king
in the Seller's eyes.
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