The past two months of home sales are at the highest levels in 5 years if you don’t count the temporary spikes we had when the government was offering tax incentives in 2009 and 2010.
I find it interesting to see that vacation home sales have surged along with investment sales. In close to half of these sales, buyers have paid with all cash. Foreclosure sales are finally down a bit, and all signs are indicating that the housing economy is on the move to recovery.
The report from NAR on vacation home sales is good news for homeowners on the Central Coast. I think we all know that many vacation home buyers will seek to buy in our area as it is still one of the most beautiful areas in the world to live. Savvy investors are snatching up the most competitively priced homes, causing a bit of a buying frenzy in certain price ranges.
How this will affect your particular situation? If you are thinking about buying, you should realize that the deals are disappearing fast. When you find the home you want, don’t be surprised if there are several offers on it at the same time. Be prepared to possibly pay over the asking price if it is priced particularly low. This has become a common scenario.
If you are selling your home, be encouraged because if sales remain strong, you will have a much better chance of getting your price this year, than last year. With foreclosure activity finally easing a bit, hopefully, we will see more regular sales, therefore making the playing field a little more even and “fair” for the average seller. My advice is to contact a professional to determine what your property would sell for in today ‘s market and be sure to ask them what your net proceeds will be after the costs of sale.