Housing numbers and you

These numbers show great news! But you might be wondering…what does it mean to me?

If you own a home, and you’re going to stay in your house for many years to come, and if you can comfortably afford your mortgage, and you don’t have one of those adjustable mortgages that might be ticking upwards in a year or so, and if you’re confident you’ll be staying employed?

Then whether the numbers are up, down, or in between, you’re OK.

In fact, the only thing that might have a direct impact on you, is whether home values in your neighborhood cause your property taxes to go up, or down. That’s a variable that you’re going to want to watch very closely.

Now – let’s look at the numbers from a seller’s perspective.

The higher sales numbers mean you have a better chance of selling your house! Moving on, and starting over is a lot easier to do when properties are moving than when the market is slow. Which means you’ll have a better chance of being successful in your home sale. These numbers also show that more and more distressed properties are getting swept away, and with fewer short sales and foreclosures available, your competition is more likely to be a traditional house, not an under-priced distress sale.

Also, as inventory of distressed properties gets cleared out, fewer short sales and foreclosures will be available as comparable sales for appraisers. This means that the appraised value of your place may go up!

With prices down in many areas of the country, you might get less at the settlement table than you would have if you sold during the peak a few years back. But, if you bought your house before the boom, your value probably shot way up, perhaps 100% or more, when real estate was going through the roof, and now…if it’s come down ten, twenty…even forty percent? You’re still ahead.

And if you sold at the top of the market back then, and bought a new home? That home would have been at the top of the market too — you would have sold high…and bought high.

But of course, if you bought at the peak, 3 or 4 years ago, and you need to sell now? You are probably going to take a huge hit. If you need to sell, you might need to do a short sale, which will hurt your credit score.

And finally…what do all these ‘Up’ indicators mean to buyers?

Well, they mean that more and more people are getting serious, and buying a home. It’s still a buyer’s market — you will find many prices are low, and in some markets, very low! And, that’s good for you.

But as the latest reports show, we’re seeing price gains in some markets. And in places like upstate New York, Idaho, and parts of Texas, the bargain basement pricing is over – properties in these areas are increasing in value.

We’re seeing the return of competitive bidding as well, which means multiple contracts on some properties. It’s not happening everywhere, but it is happening.

Additionally, fewer home sales are for distressed properties, so you might not have as many short sales or foreclosures to pick from.

And as a buyer, here’s one more thing to look for: As we get closer and closer to the deadline for that $8000 tax credit? It’s a good bet that more and more buyers will be getting serious — the competition may really get intense. Especially by the end of September, and into October.

So even though it is still a buyer’s market for now, as time passes, buyers might find they have somewhat less to choose from, and somewhat more competition for those properties still available.

Whether you’re buying, selling, or staying put — the numbers are important to you.

Written for National Association of Realtors®

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