By David Baker
So, I've been blessed enough to go on several listing appointments in my Laveen real estate area. That said, of course I don't always walk away with a listing. One of the most interesting reasons sellers decide not to sell within the last 6 months, is that they are waiting for values to go up. Why, even this morning a prospect mentioned that home values went up 30%, and she want to wait a bit more to make sure she gets as much as possible out of home. This is an ideal one to talk about, because owner is now not living in the home and will be renting home out.
So, as a home owner, will you incur any cost in maintaining home?
Every home has costs associated to it and can include HOA fees, taxes, electric, water, home owners insurance, and of course your repairs. Depending on when you bought the home, how much your monthly payments are, your costs may out weight the decision to sell at this time.
How much are values EXPECTED to go up?
This one should be a real important question. For owner who was going to rent her home, she indicated values had gone up 30%. Well in our Laveen Real estate market this is true, depending on how you look at the situation. The reality is it went up that amount in Value from January 2013 through June 2013, but since then it has been stable. In other words values have not gone up much more in about 8 months. I would argue, that because home values were so UNDERVALUED, they could increase quickly to correct themselves a bit. Well this has already occurred, but will this happen again? I don't think so. Matter a fact, I've noticed the Days on Market, and Inventory growing since October 2013. If that trend continues values could even go down. This is of course, my own observation and study of my real estate market, which is South Phoenix and Laveen Arizona.
Other blogs and articles I have read though, indicate that 2014 appears to be a year of stable real estate, but not of huge gains. The rapid gains in 2013, were in part due to investors. We are not likely to see another year of increases like 2013, now that prices are back to a little more normal values.
Why won't prices go up quickly again?
1. Investors are not finding the deals anymore, because values did go up so much.
2. Price increase was due to having a shortage of inventory during the time
3. Inventory levels have increased. In Laveen it has doubled from 2013 active homes.
So, considering selling? I would look real close at the cost of holding your home vs. the expense to maintain and wait for appreciation that may or may not come quick enough.
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