Do you remember how crazy the market was in 2006 – 2007? Home sales and home prices were incredibly high by historical standards right before the big crash in 2008. This time is different though because the home sales are not built on a house of cards full of bad loans and subprime borrowers. The numbers are backed by a truly strong economy which means we are now seeing the beginning or end of a bubble or a potential bursting of that bubble.
In March, the annual median price of a home was $236,400, up 6.8 percent from March 2016. The overall housing inventory increased by 5.8 percent to 1.83 million existing homes for sale, but was still down by nearly 7 percent compared to a year ago, NAR said.
The unsold inventory was at a 3.8-months supply, which was unchanged from February. The annual pace of sales was up over last year in all regions; However, sales declined over the month in the West region, which has seen the fastest price gains.
Read more here about the exact performance and gains of our current real estate market. http://www.scotsmanguide.com/News/2017/04/U-S–home-sales-surge-to-decade-high/
What does this mean for you?
Well, it really depends on where you are on the spectrum. Are you a potential buyer? A contractor? An appraiser? A fix and flipper? An investor? Like all things in life, it really depends on your vantage point and perspective. Let me give you my opinion on what this may mean for you.
Potential Buyer: Inventory is low which means it is a buyer’s market. Don’t get discouraged. Keep looking and you will find your property. Stay diligent as this hot market more than likely won’t cool any time soon. Once you buy your property, you will start seeing gains in appreciation right away.
Contractor: Sweet! More buyers will mean more people wanting to get new kitchens and bathrooms etc… Plus, a good healthy market is great for fix and flippers, so you always have them to rely on as well.
Appraiser: If people are buying then banks are ordering appraisals. Enjoy the gravy train.
Fix and Flipper: Could be hard finding good deals, but when you do you not only get you usual sweat equity but the local appreciation should get you a few more percentage points on your ROI.
Investor: Again, finding the right property could be difficult. Yet, when you do you will have something solid in a very good market. You know that what follows a very strong buying cycle is a very strong renting cycle. Stay in it for the long play, but buy now!
Real Estate Agents: Go get listings. Anyone that was ever wanting to sell should go sell now. This is the time. With the inventory so low, the properties should sell at the right price and relatively quickly as long as you price the property correctly.
2017 is off to a great start and the true buying season hasn’t even started. As always, I can’t wait for summer to begin, but now I have even more of a reason to enjoy the 2nd and third quarters. Let’s ride this wave together!
Don’t believe me? Don’t just take my word for it. Check these out here as well.
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