Friends and Clients --
This October saw a 1.9% increase in existing home sales — and this was big news.
That's because, for much of this year, home sales have been super slow, or even decreasing.
Just the month prior, for example, existing home sales dropped 2.2%, which was significantly worse than experts predicted.
Unlike October’s numbers, the decline in home sales is not a momentary glitch.
Instead, it’s a pattern that's been going on for several years, in spite of low mortgage rates, record levels of home equity, and a bubbling job market.
What gives? Well, there are lots of possible explanations, but here's one you might not have considered:
Homeowners are simply staying in their homes longer.
It's true. According to a new analysis by the real estate website Redfin, homeowners nationwide are remaining in their homes for 13 years on average, five years longer than they did in 2010.
There are lots of different reasons for this, including changes in demographics and changes in tax laws. The gist is that people are not moving as much as they used before.
This has caused housing inventory to dwindle to its lowest levels in decades.
In fact, the inventory of homes for sale is now near the lowest level in 37 years, when adjusting for population.
Not surprisingly, the market is very tight, and home prices continue to go up, up, up.
So what does this mean for you?
Well, if you're considering selling your home, it's simple. You can now sell in record time and, very probably, at a record price.
There is simply so much demand out there and so little inventory that many homes sell in just a few days.
While we're not seeing as many bidding wars now as we were a year ago, many homeowners today still wind up selling for over their initial listing price.
Of course, selling your home is a big decision. If you're simply curious about your options, and you want to get an idea of what your home is worth in the current market, take a look at this home value calculator, which takes into account recent Austin sales:
Click here for all available Austin homes for sale
If you have any questions about the current real estate market, or if you are interested in getting the ball rolling on the sale of your home, give me a call. I'm here to help.
Have a great day,
Christopher Watters
Watters International
Looking to buy a home? Looking to sell a home?
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