We've been writing about our crazy market for the past year or so and in reading an interesting articleÂ today andÂ it appears that distressed sales are down from Jan 2012 of 65.5% to March 2013 of 37.1%.Source/photo: Foreclosure Radar
That's a huge decrease in distressed sales coming on market as bank owned properties or short sales. As prices increase due to higher buyer demand and artifically low interest rates, more and more homeowners will transition from negative equity to positive equity territory.
Homeowners in positive equity position may be our saving grace with our current inventory issues.
Inventory issues are not the only thing hindering homebuyers. Cash buyers make up approx 30% of all sales year to date.
With the investor pools and the lack of inventory prices are on the increase but we are seeing appraisals issues and values are being hindered byÂ lower appraiser values.
This meansÂ there is hope for the homebuyer as not all sellers will choose the highest offer if value can not be justified to lender based on other market sales. On another note as a home buyer you may be asked to waive the appraisal contingency and/or put in any difference from sales price to appraised value out of pocket.
We always advise both our sellers and our buyers as to the pros and cons of every situation as they apply to our current market.
One thing for sure it is an interesting time in real estate and we'll just have to wait and see how long or short, this kind of market is going to continue. On that note, the market is surely transitioning from a buyers market to a sellers market.
If you're a homebuyer don't be caught sitting on the fence for too long as you might price yourself right out of the market. If you're a home seller, things are picking up in your favor.
As real estate agents and advisors, it's bitter sweet because we represent both aspects of this market.Â We still have sellers that are unable to sell because they're upside down and we have buyers that are continuely out bid because market is satuarated with well qualified buyers. Certain price ranged buyers are having a difficult time getting their offers accepted amongst all the offer received on a property and yet weÂ also have sellers that have ample equity and are being flooded with offers.
Did we alreadyÂ say that this market is interesting? Interesting indeed. What say you?
Shoot us a comment or feedback, we'd love to hear from you. Until the next time, make it a great day!
The Achievers Group @ REMAX Town Center: Kyle and Norma ~ proudly serving Burbank, NoHo, Sherman Oaks, Encino, Toluca Lake and the surrounding communities with honest advice, integrity and commitment.