3 Reasons Your Home May Be Worth More Than You Think!

Today’s housing market is very different from the market of the last few years.
 

Homeowners in the last 5 or 6 years seemed to fall into two camps: One group found themselves underwater, owing more on their mortgage than the property was worth. Many of these homeowners were in danger of losing their home to foreclosure. The other group, due to dramatic decreases in the value of real estate, had to put off moving into new homes because the equity they had built up in their current home had all but evaporated.

For homeowners in both of these groups, it is understandable that they’d be hesitant to sell their homes today after the roller coaster of the past few years. However, the reality of today’s market is that home values have increased, in some markets dramatically, and it might just be the perfect time to sell.

Your home might be worth more than you think. Here are three reasons why.

1. There are Fewer Distressed Homeowners
One of the big reasons why prices dropped so dramatically in the first place is because millions of homeowners, hit hard by the recession and falling prices, could no longer afford their mortgage. Facing foreclosure, they attempted to sell only to find that the value of their home was less than they owed on them.

These homeowners are called “distressed” homeowners, and to date there have been millions in this situation. Today, however, distressed homeowners may find themselves in a much better position!

However, according to the National Association of REALTORS, distressed sales are at their lowest point since 2008, when the foreclosure crisis started. This means distressed sales are no longer affecting the market as strongly. Non-distressed sellers today find themselves in a much better position than at any point since the housing crisis began.

2. Prices have increased
Many homeowners may not realize it, considering how far the real estate market fell when the housing bubble burst, but in the past 12 months, prices have actually rebounded at a fairly remarkable pace.

In fact, according to the National Association of REALTORS, prices rose 11.8% year over year in March of 2013. This is the biggest yearly increase in prices since November of 2005, when the market was near its peak.

For homeowners, this incredible increase in prices means that much of the value that was lost during the housing crisis may have returned, and people who put off selling their homes are beginning to see the value of their properties arrive at levels where selling makes sense again.

For people who were underwater, this is welcome news. These homeowners may very well have equity again for the first time in years. For people who had planned on moving up into a bigger home but held off because the value of their current home was too low, these price increases are a sign that it may be time to start considering moving up again. But price increases aren’t only reason why selling today might make sense.

3. Housing Inventory is Low, and the Number of Buyers is Growing
Generally speaking, the real estate market needs about 6 months of inventory in order to keep up with normal supply and demand. This means that at the current rate of sales, it would take 6 months for all of the homes for sale in the market to get sold.

In today’s market, there is significantly less inventory than that. In fact, nationally there is about 4.7 months worth of inventory available. This number doesn’t tell the whole story, however. In some areas, there is less than a month of inventory. There are even some places that only have a few days of inventory for sale!

At the same time, more people want to buy homes today than at any time in the past 5 or 6 years. Interest rates are at near record lows and a new generation of homeowners are trying to buy their first home.

The result is a simple supply and demand issue. There are fewer homes to sell and more people who want to buy them. Make no mistake about it, today’s market is a seller’s market and people who sell their home today are in the strongest bargaining position in years.

You Are in the Driver’s Seat!
If you have been waiting to sell your home, especially if you or someone you know is having difficulty with their mortgage, it is time for you to start exploring your options because your home may be worth significantly more than you realize. The important thing is to know where you stand.

Do you know what your home is worth today? What are homes in the area selling for? These are all questions to which the answers have changed significantly in the last few months and knowing what your specific situation is can help you make more informed choices.

As a real estate agent in today’s market, I make it my business to have the most up-to-date information and can help you understand exactly what your current situation is. If you have been underwater, it is entirely possible you are not anymore. If you have been holding off until the market started to recover, that time is now.

Contact me today for a free market analysis and let me help you determine your best options. Arm yourself with information and make a more informed choice. It might just end up being an incredibly profitable decision.