June 7th, 2013
In her blog post “4 Real Estate Trends for Summer 2013,” Vera Gibbons offers a look at what the summer may hold for potential home buyers, as they set out into the world of real estate during the busiest time of the year.
Low Mortgage Rates. While the economy is starting to pick up, the Federal Reserve is keeping rates low to help keep the housing market well on its way to a full recovery.
Little Inventory. With mortgage rates still low, foreclosures down and more people back to work, people finally feel financially secure enough to consider buying a house. But at the same time, sellers aren’t quite ready to begin listing their homes. In February, according to Gibbons, there were 2 million homes on the market nationally – which is a supply of about 5 months (6 months is considered normal).
Home Stalking. “As demand from home buyers grows faster than the supply of homes for sale, many buyers are taking less conventional routes to find their dream home: They’re knocking on the doors of homes they like, writing handwritten notes, and tracking down the owners in hopes they may be willing to sell even though their home is not technically on the market,” Gibbons explains.
Bidding Wars. The old advice to make an offer just below asking price could be out the window this summer, as both potential homeowners and investors with all-cash offers battle for the best homes up for sale.