Friday, April 12, 2013

What you need to know about the Spring Homebuying Season


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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