Real Estate Blog
Sunday, October 07 2012
A New Season...
By Michael Ardolino, Broker-Owner, Realty Connect USA
All signs point toward the continued recovery of the housing market. The momentum I’ve been reporting all year continues to pick up pace. As noted recently by Standard & Poor’s David Blitzer: “Single-family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down….All in all, we are more optimistic about housing.” It’s time to make your move, and here’s why:
Timing & Tactics for Sellers
· Remember that record low rates work for sellers, too. Move-up buyers can better their lives, enjoy a larger home in a better school district, and at the same time lock in a low housing payment for 30 years. This creates a very effective hedge against inflation and works to safeguard your family’s future.
· Fall and winter bring out the serious buyers. Be a serious seller. Secure your sale by pricing your home
· The longer you wait to sell, the more you’ll likely end up spending on your next home. Rates and prices won’t stay the same forever. Don’t wait until it’s too late, or you could face a larger down payment and a higher monthly payment—or the prospect of having to remain where you are.
· Keep in mind the non-financial reasons for making a move. (See Exhibit 1.) Many sellers all over the country have decided that it is simply time to move on, whether to a new job, to a new state, to be closer to family, or to enjoy a larger home.
· Potential sellers who may have the impression that homes are not selling should note that right now, homes are selling at the rate of 12,247 per day nationally. One of those homes could be yours.
· Rates, rates, rates…We have been blessed by a 30-year fixed rate of less than 4% since December 2011. The
· Inventory on Long Island has been dropping significantly. You may find it increasingly difficult to find the home of your dreams, and if you do find it, there may be more competition for it.
· Prices are relatively stable on Long Island. Some analysts are predicting modest local price appreciation in 2013. The smart money will buy before prices go up. Real estate is still the best way to build wealth over the long term.
· Renting has become prohibitively expensive. Historically, rents increase by an average of 3% per year. This year, rents have gone up by 5.4% nationally. Home affordability, in contrast, is at the highest level Long Island may ever see. Don’t miss the boat.
Do you need help understanding the changes that are occurring in today’s market, and how the change of seasons may affect your strategy as a buyer or seller?