Now is the Time to Sell Your Home - Demand is High

If you thought about selling your house this year, now is the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.

Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed:

“Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.”

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. Its time to hit the gas.

Give me a call or email today for a free market analysis of your home. 

http://www.brandyfarris.com

Housing Update: Demand Up, Supply Down, Prices Increasing

Earlier this week, the National Association of Realtors (NAR) released their latest quarterly report. The report covered three important aspects of the housing market:

1. Buyer Demand
2. Supply of Housing Inventory
3. Single Family Residential Prices

Today, we want to break down the highlights of the report along with several quotes from Lawrence Yun, the Chief Economist at NAR.

Buyer Demand

Total existing-home sales (which include single family and condo) were at an annual rate of 4.97 million in the first quarter of 2015. This represents a number which is 6.2 percent higher than the pace during the first quarter of 2014.

Yun: "Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market."

Supply of Housing Inventory

There were 2 million existing homes available for sale at the end of the first quarter of 2015 which represents a 4.6 months’ supply of inventory which down from 4.9 months a year ago. A healthy balance of supply between buyers and sellers is 6 to 7 months.

Yun: "With supply remaining tight—especially at the entry-level price range—buyers will need the expertise and local market insight of a Realtor® to help them through each intricate step of the buying process."

Single Family Residential Prices

Home prices accelerated in 148 out of 174 metro areas (85%) during the first quarter of 2015. and the number of areas experiencing double-digit price appreciation doubled compared to last quarter. Compared to last quarter, the number of regions experiencing double-digit price appreciation doubled. The national median existing single-family home price in the first quarter was $205,200, compared to $191,100 in first quarter of 2014. This represents a 7.4% increase year-over-year.

Yun: “…stronger demand without increasing supply led to faster price growth in many markets…Homeowners throughout the country have enjoyed accumulating household wealth through the steady rise in home values in the past few years." 

Bottom Line

Whether you are thinking about buying your first home or selling your current residence to buy the home of your dreams, call me today to discuss how the numbers above have affected your neighborhood's prices.

New Listing! 555 Parkview Place

http://www.trulia.com/property/3200966241-555-N-Parkview-Pl-Baton-Rouge-LA-70815

4 Reasons to Move Up this Spring

Spring is in full force; the summer months are right around the corner. If you are debating moving up to your dream home, here are four great reasons to consider buying today instead of waiting.

1.) Buyer Demand is High & Inventory Is Low

Recent numbers show that buyer demand is at the highest peak experienced in years, and inventory for sale is at a 4.6 months supply, which is still markedly lower than the 6.0 months needed for a historically normal market. The National Association of Realtors, Chief Economist, Lawrence Yun put it this way, "Demand in many markets is far exceeding supply, and properties in March sold at a faster rate than any month since last summer."

Listing your home today can greatly increase exposure to buyers who are out in force and ready to act.

2.) Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 11.7% (most pessimistic) and 27.5% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting for your current home’s value to increase before selling could price you out of your new home if you aren’t careful.

3.) Mortgage Interest Rates Are Still Near Record Lows

As we reported last week, interest rates have remained below 4% for some time now, and are substantially lower than the rate previous generations paid when getting a mortgage. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will rise over the next 12 months. An increase in rates will impact YOUR monthly mortgage payment. Even an increase of half a percentage point can put a dent in your family’s net worth. Whether you are moving up or buying your first home, your housing expense will be more a year from now if a mortgage is necessary to purchase your home.

4.) It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Have you always wanted to live in a certain neighborhood? Would a climate change be just what the doctor ordered? Would you like to be closer to family?

Bottom Line

If the right thing for you and your family is to move up to your dream home this year, buying sooner rather than later could lead to substantial savings.

Baton Rouge area home sales up nearly 15 percent in March

The number of houses sold in metro Baton Rouge jumped 14.7 percent in March when compared with figures from the year before.

There were 755 homes sold in March in the nine-parish area, according to figures released Thursday by the Greater Baton Rouge Association of Realtors’ Multiple Listing Service. That compares with 658 MLS sales in March 2014.

Ascension Parish led the sales gain, with 144 homes being sold in the parish in March, an 18 percent increase over the 122 sales a year before. A limited inventory of available homes for sale had stymied sales in the parish for the past few months.

Livingston Parish had a 13.7 percent gain in sales during March, going from 124 sales in 2014 to 141 MLS transactions. 

And East Baton Rouge Parish, which accounts for the largest percentage of sales in the metro area, had a 13.4 percent gain. There were 390 MLS sales in the parish during March, compared with 344 in 2014.

The median home sales price rose by 3.8 percent in March, to $184,900 from $178,110 — meaning half the houses sold for more and half for less than that price. The number of homes for sale fell 13.8 percent to 3,588. The supply in months was 4.5, compared with 5.9 in 2014. Six months is considered an ample supply. The average amount of time a home stayed on the market until being sold was 92 days, down from 94 in 2014. The number of new listings was up 5.5 percent from 1,136 in March 2014 to 1,198. And in a sign of future activity, the number of pending sales rose by 17.7 percent from 838 to 986. Through the first three months of the year, there were 1,923 home sales in the metro area, compared with 1,788 through March 2014, a 7.6 percent increase.

Sales were up 15.1 percent in Livingston for the first quarter of the year, going from 311 to 358.

East Baton Rouge saw a 10.1 percent increase through the same period, coming in at 1,017 closed sales compared with 924 in 2014.

Ascension sales were up 1.9 percent from 363 through the first quarter of 2014 to 370 this year.