NOW IS THE TIME TO SELL!!! Homes prices are up, rates are at record low, and there is low inventory which leaves people in selling heaven. Therefore people are dealing with home wars where there are multiple offers on a house. Since selling is hot right now, you need a top agent. You are welcome to contact me for all your real estate needs.
Prices Up 3%
Redfin's data for 19 U.S. markets show June prices increasing 3.0% over last year, with one in four homes under contract in less than two weeks; the week before, CoreLogic reported that May home prices increased 2.0% year-over-year, rising for the third consecutive month.
Rates at Record Lows
Low rates and low inventory are creating the price pressure. The interest rate on a 30-year mortgage hit an all-time low last week of 3.56%. The weaker the economy gets, the lower rates go, and the more demand there is for big purchases. Rates below 4% have become like living next door to Michael Jordan: a stupefying fact that we now take for granted. This makes the demand in real estate deep if not broad. The housing recovery has been resilient because people touring homes right now will have good jobs and good credit regardless of macroeconomic swings. Since only half the country can qualify for a loan, the "haves" are the ones buying, often renting the home to the "have-nots." Rental vacancies are at a ten-year low.
Inventory is the Problem
The number of homes for sale is down 19% from last year, and down nearly 50% in California and Seattle. Why the inventory crunch? For years, the banks have provided much of the liquidity in the market, selling foreclosures at prices no other sellers would take. But now that the banks have left the building, no one else can fill the gap.
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