Birmingham Statistics For October 2014
? Total residential sales in October 2014 were 1,010 compared to 938 in October a year ago (7% increase)
? Average price in October 2014 was $204,201 compared to $188,911 in October 2013 (8% increase)
? Median price in October 2014 was $165,000 compared to $161,350 in October 2013 (2% increase)
? Inventory totaled 6,898 for October 2014 compared to 7,781 in October 2013 (11% decrease)
As you can see we are in a rising market. this means that inventory is still low and as inventory remains low prices will continue to increase at the current moderate levels. We are still well below our "All time Highs" in price which we saw occur during 2007.
What this means for sellers: While yes.... prices are continuing to increase now is a great time to sell. Inventory is low and the price of your next home may be going up. Couple this with extremely low interest rates and there has never been a better time to make that move.
What this means for Buyers: HURRY! prices are increasing and interest rates are remaining incredibly low. Rising prices and rising interest rates means that you could pay more on the front end but over the life of the time that you own the house you will a lot more in interest as well. Bottom line is the longer you wait the more you pay.
School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house. But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family.
Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market. These buyers are ready, willing and able to buy…and are in the market right now!
As we get later into the year, many people have other things (weather, holidays, etc.) that distract them from searching for a home. Take advantage of the buyer activity currently in the market.
Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.
There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.
Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).
The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. Any delay in the process is always prolonged during the winter holiday season. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.