Ways the housing market has changed for 2013
As a top North County home seller, I can tell you my local market is seeing these changes as well. How about yours?
1. Homes are more expensive — but not much more.
An improving economy and low interest rates have boosted buyer demand in most markets, decreasing supply and raising prices. These two factors are the common indicators of a seller's market! If you are thinking of selling your home, the tide is in your favor.
Related: Home prices see 21% increase!
2. Loans are getting pricier.
After bouncing along at record lows in 2012, interest rates have been going up slightly in 2013. Just how much they will actually go up is really anyone's guess. However, experts estimate rates will hover between 3.5% and 4% for much of the year, barring any big changes in the overall economy.
3. Inventory is bottoming out.
While prices are going up, the problem remains that they haven't gone up enough to enable many homeowners to sell and recoup enough to put down on a move-up home. Also, the banks are funneling more of their distressed sales to investors as rental properties. The dearth of listings should begin to change sometime this year, analysts say, as pent-up demand, historically low interest rates and slightly higher home prices prompt more move-up buyers to list their home.
Related: Search Current North San Diego County Home Inventory!
4. There are fewer distressed-home bargains to buy.
The mortgage crisis is starting to fade into memory, and so are those cheap foreclosure deals. While the number of distressed homes is still fairly high at 2.3 million units, according to CoreLogic, fewer of these homes are getting a for-sale shingle. One reason: Almost half of those 2.3 million homes are still seriously delinquent but haven't been taken back by the bank because of a backlog in processing.
Related: Questions about Short Sales & Foreclosures?
There are actually eight ways mentioned in the original MSN article. I'll post the other four later this month! For more information, visit my website at www.ServingNorthCounty.com.