Why is Springtime 2014 for Sellers?
When selling a home, many people obsess about curb appeal or paint colors to boost home value, but these things are trivial when compared to the real determinate of value: time. Experts in real estate across the United States say the outlook for home sellers is highly positive this spring, and Ann Arbor leads the way. With the price of homes increasing along with new rules for borrowers, buyers are anxious to purchase quickly. If you’re thinking about selling your home, now is the time.
1. Rising Home Prices
The average residential price in Ann Arbor jumped 22 percent from last year. This time last year the median price was $227,500 and rose to $240,000. The residential property assessments and taxable values for 2014 increased the average home values for a 6.1 percent rise from springtime of last year. In other words, prices are rising and you have a much better chance this year of getting a price you are pleased with over last year.
2. Low Inventory
A drop in available houses for sale has buyers in a scramble to find the right house. This trend will start to decrease sales, not because there are no home buyers, but because there are no homes to buy. Inventory usually begins to rise in January and February; however, this year it’s down 22 percent since March. The harsh winter could have prevented sellers from listing, which is causing a shortage of homes. The number of active buyers waiting for the right home far outnumbers the available homes for sale.
3. New Mortgage Rules For Borrowers
The Consumer Financial Protection Bureau issued new mortgage rules in January 2014 that are meant to decrease the risk of defaults and foreclosures. Home buyers must now prove they have the income and assets to afford the payments for the life span of the loan. The average rates for a fixed 30-year loan are predicted to rise 5.5 percent by the end of 2014, and this makes it more difficult for home buyers to meet the financial requirements to purchase their dream home. The good news is you now know you are working with serious buyers who are financially ready for the process.
4. Home Buyers are Eager to Purchase Now
Buyers aren’t competing with investors this year and find themselves left with prices that are increasing steadily. Locally and across the United States, buyers are looking to beat the rising prices. Household incomes are at a standstill, so buyers want to purchase a home sooner rather than later. With more buyers than homes for sale, the time your house remains on the market is an average of 60 to 130 days.
With inventory down, buyers are finding it difficult to locate the home of their dreams. They are paying higher prices the longer they wait. Property values and prices are up and the real estate market is saturated with more buyers than sellers. The forecasting firm Capital Economics predicts the price gains will slow four or five percent this year.
Since there is still low inventory and prices remain higher, the time to sell really is now. There is less competition and a high demand for the homes on the market. If you are interested in listing your home or hearing more information about the Ann Arbor real estate market, please do not hesitate to contact us. If you are still researching, feel free to check out our Definitive Guide to Selling Your Home.