Sellers : It’s A Good Time To Buy A Home
As compared to three months ago, home sellers are more confident , says online real estate brokerage Redfin in its quarterly Real-Time Home Seller Survey.
This month’s survey gathered data from 567 imminent sellers across 20 major metropolitan markets including Chicago, Illinois; Boston, Massachusetts; and Orange County, California.
Although small, the sample set was fairly uniform in its outlook, and showed positive sentiment as compared to the last Real-Time Home Seller Survey, released July 2012 :
- 67% of sellers said it was a “Good” or “OK” time to sell, up from 63% last quarter
- 74% of sellers said home prices will rise in the next year, up from 72% last quarter
- 83% of home sellers believe they would sell their home for a higher price if they waited 1 or 2 years to sell, up from 80% last quarter
Other interesting statistics from the survey include that 7 percent of home sellers plan to price their property “below comparable homes”, while 31 percent plann to price above comparable homes; and that sellers are showing less concern for foreclosures and short sales, as well as for a buyer’s ability to secure a mortgage.
92% of home sellers think now is a good time to buy a home.
Sellers Form Data-Driven Opinions
The good news is that sellers are forming opinions based on fact — home prices are rising on a national level, and in many U.S. markets.
According to housing analytics firm CoreLogic, home values rose five percent nationwide between September 2011 and September 2012 and, looking ahead to October, that jump is expected to reach 5.7 percent.
There are two reasons why home values are rising, says CoreLogic. The first is that home inventory is smaller this year than it’s been in the recent past. Fewer foreclosures have contributed to a drop in supply, as has a pull-back among the nation’s home builders.
Despite the strongest demand for new homes in 6 years, builders are holding supplies tight, forcing prices higher.
A second reason for rising home values is that, as mortgage rates troll near the lowest levels of a lifetime, rents are rising in many U.S. cities, adding to the potential buyer pool.
Fewer homes for sales and more buyers chasing them results in higher home values.
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For today’s home buyers, the Redfin survey suggests that home values will continue to rise through the end of 2012 and into 2013. As sellers gain confidence, they’ll be less likely to negotiate and less likely to make concessions for repairs and closing costs.
If your plans for next year include purchasing a home, consider moving up your timeframe. The market of late-2012 may be more favorable than the market of 2013.
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