Upward Momentum
“The market is probably going to zig and zag a little for the next six months, but it’s not going to drop any further.”
-William Wheaton
Professor of Economics and Real Estate MIT, Boston, Mass
Reason #4
When supply exceeds demand, buyers have the upper hand–and that’s where we are now! The current supply of homes for sale now stands at 12.5 months, meaning that at today’s pace of home sales, it would take 12 and a half months for the existing inventory to sell.
At the same time, recent market upheaval has given rise to a surplus of foreclosed properties that banks are eager to sell, and an increasing number of listing agents are also negotiating “short sales” with banks to sell their clients’ properties at a price that’s less than what they owe on their mortgage. Collectively known as “distressed properties,” short sales and foreclosures are available at every price range and tend to sell for an average of 20 percent below market value – and sometimes much more.
Distressed properties are now part of the mainstream of real estate transactions. According to the National Association of REALTORS®, 32 percent of all homes sold since the beginning of 2010 have been either a short sale or a foreclosure. So now’s the time for smart buyers who are looking for a deal to seize the opportunity!
What does this mean for you?
For you as a buyer, this means lots of choices, lots of negotiating power and that smart sellers are fiercely competing for your business, both in terms of the price and the condition of their homes.
Mark Fuller is a leading real estate professional specializing in Luxury Homes In Houston Texas.