Prices are Up: Prices are steadily rising. You’re home could be worth more than you think.
But is now a good time to consider selling your home? First and foremost, ask yourself what the reason for selling is, i.e. are you considering an out-of-town move, is it a job change, a change of pay? Just because prices are rising doesn’t mean it will continue. There are a lot of outside factors that can influence the prices. We saw a substantial decline in our market following 9/11 which was a totally unpredictable event.
If we look at the actual numbers and compare month-to-month, we can see that median home prices rose slightly from $181,000 to $186,000 as with Price per Square Foot from $105 to $110. Average sales prices also rose. Condos actually went down in price from both median and average but rose slightly in price per square foot. And when compared to last year, prices have risen by 23%!
Inventory is Down: Inventory is very low in many price ranges and neighborhoods.
When inventory is low, a number of things happen: 1) prices rise due to demand and 2) sellers receive multiple offers due to lack of inventory.
A lot of sellers may want to wait until the spring because they believe their home will sell for more money than in the winter. Though we have a lack of inventory now, there is no guarantee that will be the case in the spring. If more homes make their way into the market, then the competition could drive prices down so there is no guarantee that spring is the best time to sell.
Interest rates are low: Low interest rates mean more buyers are able to purchase your home.
When interest rates are lower, people are more likely to buy homes because it will cost them less to borrow money than when interest rates are higher.
Higher interest rates translate into a higher cost for the borrower which then results in fewer homes being sold because fewer people will be able to afford mortgages.
Lack of Inventory + Low Interest Rates = Multiple Offers.
With little inventory, multiple bids above listing prices are more prevalent today than any time in recent history. In an appreciating market, appraisals need to reflect the true value of properties. Buyers also need to be prepared. They will need to get more competitive, have their financial house in order, get pre-qualified and have a realistic understanding of the value of real estate in our market.
It’s definitely a seller’s market. The best news for sellers is that we have a high demand for housing throughout the region. The challenge is that our housing inventory is at an all time low. Lack of inventory with high demand and record low interest rates has helped to raise house values, (23% from December 2011 to December 2012). Short Sales and Non-distressed properties continue to be about 90% of the sold inventory.
If you're think of listing your home, or buying this year, contact an experienced Dickson agent. Our agents have the training and expertise to make your transaction as smooth and problem free as possible.
Additional Resources:
- Market Conditions
- Selling Your Home
- What's My Home Worth?
- Short Sale Resources
- Bank Owned Resources
- Additional Resources
