Inventory is at the lowest level it has been in years. That means less competition for you and more demand. Simple supply & demand. Lower supply and higher demand means better prices!
However, conditions are bound to change. Banks have been holding back foreclosures because the "robo signing" incident. Several large banks were sued by the Federal Government and had to suspend foreclosures. They have since settled and have began issuing NOD's (notice of defaults) again. One of my small areas has gone from a few NODs per month to over a dozen per week!
As these NODs turn into Short Sales and Bank Owned properties, inventory will again rise. Even more significant is that the ratio of distressed properties vs normal listings will rise as well. This will drive the prices down
As a side note, interest rates are about as low as mathematically possible. Eventually they will have to rise and when they do the real estate market will suffer.
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Since these kinds of NODs develop into Quick Revenue and also Lender Held attributes, supply can once more go up. A lot more considerable will be the proportion regarding affected attributes compared to typical item listings can go up at the same time. This may push the values straight down.Westlake Village Insurance
ReplyDeleteYou are absolutely right. Ironically what happened in the year since I wrote this, investors stepped in and started buying lots of 50 or a 100 homes. This limited the impact of the distressed properties. However, they have been starting to come onto the market now and there are again good buying opportunities for buyers. I still think it's a great time to sell you home because it is still a sellers market here in SLC.
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