What is driving the surge in housing. Unemployment is still down and investors cannot buy all the homes. Renters need jobs to rent

Asked by Angela, Webster, MA Tue Aug 27, 2013

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George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Tue Aug 27, 2013
Supply and demand will always dictate the condition of the market. In the case of housing, let's use my home state of CA for example, this is no joke! There are 10-20 offers on a home single home. Why do you ask? Simple, there is still is a lack of inventory out there for buyers and guess what type of buyers are coming out on top? Of course the investor with cash! Those cash buyers are paying well over the asking price and what do they do? Simple, they in turn sell to other first time investors and the cycle goes on and on and on and poor Joe and Patty Smith out there can't win for trying. All the while prices are going up, interest rates are going up, taxes and insurance are going up. When will it stop? As soon the cash dries up or the market can't bare it anymore, and who knows then maybe we'll see another correction. Until that time, we stuck here. Oh how I miss the good ole days when there was actually a real seller who sold to a real buyer. Miss those days.
2 votes
Bill Eckler, Agent, Venice, FL
Wed Aug 28, 2013
The real estate market varies from one location to another...sometimes greatly! As I see it, many retirees have been waiting year to sell their larger family home to down size and/or relocate to a retirement area. Many have planned for years but have had to put their aspirations on hold.

A small crack, in an otherwise dismal time, has presented itself and many of these people are taking it and running. They have accepted the fact that they will never realize the value they would have several years ago and have accepted this.....they may be selling for less but they are now looking to move on to the next stage of their lives.

Make no mistake, there are many other reasons why the market is clicking along but I feel this one is the one most often over looked and worthy of noting.

For what it's worth.....Just my two cents.....

Bill
1 vote
Michael Hamm…, Agent, Suwanee, GA
Wed Aug 28, 2013
Fear and a dearth of homes in great, move-in ready shape are driving the surge in housing, IMVHO, Angela. Fear of higher home prices next quarter and higher interest rates next month seem to be the two constants in our market. Also the fact that there is still a lot of "pipeline" inventory that has been foreclosed but not yet made it back on the market. Freddie and Fannie might be playing an interesting shell game. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
1 vote
Lee Taylor, Agent, Decatur, GA
Wed Aug 28, 2013
I know that you are getting hyper-curious since something happened to you recently with some GA real
estate and things aren't making sense - I've saw your other question.

I just gave 3 thumbs up to the answers below - simply put, this indeed is about supply, and demand, locally - by zip, by ESD, by police beat, by street, etc...

My man Chartmaster Chuck summarized the Q2 2013 market in metro Atlanta as follows:

"Another market shift is occurring. During 4Q 2012 we saw confirmation of a change from a market driven down by Distressed Property sales, to one driven up by reduced supply. This caused a fundamental change in the psychology of the market from a “Buyer’s Market” to a “Seller’s Market” environment.

The results are that many of our usual market measurements have turned in the direction of market recovery. Significant positive changes occurred in the median sales price (+23.6%), median S/OLP percentage (+6.6 percentage points), median DOM (-27.1%), incidence of price reductions (-15 percentage points) and percentage of failed listings (-13.0 percentage points) during this quarter.

However, even as these improvements were taking place, the percentage of distressed property sales remained high (39.4%) and the number of Active listings continued to fall. These conditions should also be considered by sellers when setting listing prices. Continued distressed property sales maintain a dampening effect on seller flexibility by their use as comparables in property price evaluations.

With our uncertain economy, short term housing market improvements should still be viewed cautiously. A sharp increase in the number of Active listings or distressed property inventory, or a decrease in sales, could expose the fragile nature of this improvement. But for now at least, Sellers should find less pressure during contract negotiations and Buyers will see a more competitive market with fewer sellers willing to accept low-price offers."

And again, Angela - get out of judgment and into curiosity.

Atlanta is holding up pretty well...
0 votes
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