The housing market is recovering nicely. Prices have increased nationally by double digits over the last twelve months. Competition from the shadow inventory of lower priced distressed properties (foreclosures and short sales) is diminishing rapidly. Now may be the perfect time to sell your home and move to the dream house or beautiful location your family has always talked about.
The one suggestion we would definitely offer: DON’T OVERPRICE IT!!
Even though prices have increased by more than 10% over the last year, the acceleration of appreciation has slowed dramatically over the last few months. As an example, in their April Home Price Index Report,CoreLogic revealed that home prices actually depreciated by .08% this month as compared to last month’s report. What concerns us is that Trulia just reported that asking prices are still continuing to increase.
Because investor purchases are declining and there are more listings coming onto the market, we believe that sellers should be very cautious when they price their house. The alternative might be that you could lose money by overpricing your home at the start as explained in a research study on the matter.
Though it is a great time to sell your house, pricing it right is crucial. Get guidance from a real estate professional in your marketplace to ensure you get the best deal possible.
We have never hid our belief in homeownership. That does not mean we think EVERYONE should run out and buy a house. However, if a person or family is ready, willing and able to purchase a home, we believe that owning is much better than renting. And we believe that now is a great time to buy.
We are not the only ones that think owning has massive benefits or that now is a sensational time to plunge into owning your own home. Here are a few others:
Benefits of Owning
Joint Center for Housing Studies, Harvard University
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord…Having to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings.”
The Federal Reserve
“Renters have much lower median and mean net worth than homeowners in any survey year.”
Benefits of Buying Now
“Buying costs less than renting in all 100 large U.S. metros… Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally.”
"One thing seems certain: we are not likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012…Yes, rates are higher than they were a year ago – and certainly higher than two years ago. But if you look at the averages over the last four decades, today's rates remain historically low."
Via Keeping Current Matters
The Hamilton County Home Improvement Program (HIP) is an initiative of the Hamilton County Commissioners and the Hamilton County Treasurer. The "HIP" loan allows homeowners in Hamilton County communities to borrow money to repair or remodel their homes or rental property at interest rates 3% below the lowest rate a bank would normally offer. Loans may be used for:
Spring Selling Market in Full Swing
March Closings starting to Gain Momentum
1,625 homes were sold (closed) last month - - an 8.0% decrease from a year ago.
The March average home selling price climbed to $172,227 vs. $156,973 a year earlier, an 9.7% increase. The average price has increased year-over-year for 25 consecutive months.
Local home mortgage rates in March averaged 4.45% for a 30-year fixed rate loan. Even though the rates are up slightly from 3.67% a year ago, they are still at a level that makes purchasing a home very affordable and does not appear to be negatively influencing home sales.
The inventory of homes for sale as of March 31 continued its year-over-year declining trend to 8,789 from 9,575 a year ago, down - 8.2%. However, March inventory increased +2.8% compared to February 2014. This was a result of a 1.1% increase in new listings in March compared to February 2014.
Nationwide, March home sales were down -0.2% from February on a seasonally adjusted basis and were down -7.5 % from March 2013.
Source: Cincinnati Area Board of Realtors