Home prices have risen in our market year over year, and they’re predicted to rise even further in the next year. Here’s what that means for buyers and sellers.
As we move through September and head into October, prices are leveling off in our market due to rising interest rates. As a result, the inventory numbers are getting a little bit better.
In the lower price ranges of the market, prices have gone up substantially more over the past year than they have in the higher ranges because we have a bigger inventory shortage in the price ranges in between. The best news about these rising prices is the average equity homeowners have gained year over year. Remember when some people’s houses weren’t worth what their mortgage was? Well, that situation is disappearing.
At the 0:56 mark in the video above, you can see a slide that shows the average percentage of homeowners from each state who have a positive equity share. In most states, the percentage is over 95%. Nationwide, the number of equity-rich homeowners is more than twice the number of homeowners who are “underwater.” For many of you, this means your house is delivering you equity and net worth.
CoreLogic forecasts that prices will rise 5.1% in the next year, and at the 1:28 mark in the video, you can see how their 2018 home price projections have fared against the actual rate of appreciation thus far. They predicted that prices would go up 4% or maybe 5%, but the actual rate of appreciation has outpaced that projection.
If you look at the amount of inventory that’s been available this year compared to the year before, there are fewer homes to sell. As you can see in the slide at 1:48, a contributing factor to this low supply of inventory is that current homeowners are reluctant to trade up in a market with rising prices.
If you’re a first-time homebuyer or a move-up buyer, the best time to buy is when prices and interest rates are low, and I think that time is now.
If you’re a seller, you need to start preparing your 2019 home sale right now so you can crush the competition. More homes will be coming on the market, so you need to know how to differentiate your home from everyone else’s.
A good way to learn how to do this is by attending my next Home Selling Sharks Seminar on October 13 at the Hilton Garden Inn in Fort Washington. If you come, I’ll teach you everything you need to know to sell your home quickly and for top dollar. To get all the details of this event, visit www.homesharkseminar.com. You won’t want to miss it!
As always, if you have any more questions about our market, don’t hesitate to give me a call or send me an email. I’d be happy to help you.