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If you have been following the real estate market, chances are you already know that things have been slowly but surely improving over the past few years. Particularly during the past two years we have seen a stronger market in terms of sales and inventory levels. Today, we are looking at inventory levels so low that sellers are finally enjoying a market controlled by them for the first time in years.
Record Setting Low Interest Rates Still Going Strong
But the news is not all bad for buyers. Though they are no longer in “control” of the market, buyers are still enjoying very strong buying power with the phenomenal interest rates still available. In fact, with the Fed keeping the base rate low, we can expect to continue seeing such low interest rates until at least late 2013.
Short Sales Continue to Relieve Many Underwater Mortgagors
One of the things we have been dealing with is a higher number of pending short sales. Banks are now streamlining the process more so than what we had seen in the immediate aftermath of the 2007/2008 housing crisis. For those that may not know the clear definition of a short sale; when a house is worth less than what is owed on it, a short sale takes place to satisfy a partial amount of the loan and the bank is left with a shortfall on the rest. There are some eligibility requirements such as there must be a hardship to qualify for a short sale, however for the right candidates it can be a good alternative to foreclosure. In some cases, banks will even provide several thousand dollars in relocation assistance to qualified short sale sellers.
Sellers Enjoying Multiple Offers and Stronger Selling Market
Along with fewer homes on the market, comes increased demand and simultaneously a push toward higher prices. One of the effects of our current seller’s market is that sellers are experiencing multiple offers. The number of days it takes to sell properties is also going down, making it an even more ripe market to sell your home.
For homeowners currently stuck with interest rates that are higher than today’s super low rates, refinances are providing a huge amount of savings. In fact, some borrowers have had multiple refinances over the past 18 months.
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If you would like to sit down to evaluate your real estate situation, goals or needs – contact us today at 661-259-1100, 818-898-2255 or email at rod@teamrod.com. We look forward to hearing from you!
