Experts are warning buyers to buy this year and sellers to sell this year. How can we do both??
Buyers: interest rates are rising slowly. A 1% change can dramatically change your monthly payment. Check with your lender to see what is going on in your local area.
Sellers: Pent up foreclosures are getting ready to slam the market. Shadow inventory are homes on banks books that are eventually going to make it back to the market. Right now, there is about 10 months of inventory. A normal market is 5-6 months. Ask your local Realtor to check your neighborhood inventory. According to CoreLogic, Hampton Roads has about 10 months supply of distressed properties.
Depending on who you talk to, there is between 3.2 and 5 million homes on the books. They are trying to figure out when to release them so the market is not flooded. According to NRA, 5 million homes is typically what sells in one year. So, we already have a surplus of inventory. With the backlogged homes, it is going to hit hard. (This number includes people 90 days late on their mortgage).
The areas hit the hardest include Chicago, Miami, and New York. They all have 30+ months of inventory.
According to Macro Market, prices are going to dip this year, and start to climb between 2012-2013.
What does this mean for you? Check with your local lender and Realtor and share it with us, please.
Suzi Toth Noyes
Pam Toth, ABR, CRS, GRI
William E. Wood and Associates
Licensed in VA
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