This market report is hot off the press! Learn about what the increase in homeowners recently means for buyers and sellers.
I am back with the September edition of the hot-off-the-press market report!
Summer’s over and homes are still flying off the market. More and more people are jumping into homeownership. Market Watch quotes consumer confidence rose in July to the second-highest level in 16 years.
Americans shrugged off all the drama of President Trump’s Washington, and took heart in the best labor market in a decade. Homeownership rates in the US actually went up 63.7%—the highest rate in three years.
The bottom line is that the economy is strong and improving. Interest rates remain low, and employment is high. When combined with the coming demographic shift as more millennials enter the prime household creating years, this suggests that the housing market is on a steady course for the foreseeable future.
As a matter of fact, people were surveyed with this question: “What would be the best way to invest your money—money that you wouldn’t need for 10 years or so?” Sure enough, real estate was the No. 1 answer.
Another reason why more and more people are becoming homeowners is wealth. According to state representative Loretta Sanchez, homeownership is the first rung on the ladder of wealth creation in our nation. The average worth of a family that owns a home is $225,000, while that of one who is renting is only $5,000. This means that the net worth of a homeowner is 45 times more than a renter.
Of course, because more people are becoming homeowners, the supply of homes continues to be very low. This makes the current market an even better time to sell. That’s why my coming-soon listing program is so vital in this new market.
Check out these next stats:
- Homeowners who sold in the second quarter realized an average price gain of $51,000 since the purchase—the highest average price gain for home sellers since 2007.
- This represented an average return of 26% on the previous purchase price of the home.
- Homeowners who sold in the second quarter of 2017 had owned an average of 8.05 years.
Additionally, mortgage rates are projected to go up by next year, which could cause some buyers not to be interested in moving anymore. Waiting will cost more in price and interest rate for the buyer, making your home less affordable for buyers, and possibly lowering the value of your home.
These next statistics always make me chuckle. The difference between what a homeowner believes their house is worth and what the appraiser thinks its worth is just short of a 2% difference. When selling, I run the home through my pinpoint pricing analysis to make sure that we get the price that the home will appraise for, and save thousands for my clients.
If you’re thinking of selling in the next three months or three years, come to one of my home selling seminars—the next one is January 20th at the Hilton Garden Inn in Fort Washington. It’s a great way to get information and tips on how to sell your home, and I’ll give you my eight secret strategies guaranteed to save you thousands on buying a home. Visit HomeSharkSeminar.com or give us a call.