Reports indicate steady, positive trends for the U.S.
housing market, with 19 markets fully recovered!
This is great news for homeowners who have been waiting and
waiting for their equity to return. It is important to note, however,
that while it is true that home prices are rising upward, it is happening
gradually and will take time for many homeowners to regain the equity they
watched disappear during the recession For some homeowners, though,
prices are high enough now where they are able to sell without having to do a
short sale.
Not having to short sale is significant because even though
the seller may not be recouping all of their equity, they will not have to take
a hit on their credit which comes with selling a home on a short sale.
With this fairly recent reversal of the market, we can now
cautiously say that we are in a seller's market. The reason that I say
this cautiously is for a couple of reasons. First, there are still a lot
of cash buyers out there. Most cash buyers want to feel like they are
getting a discount. In many cases, unless the home is in the lowest price
range, they expect the seller to negotiate on the price. Secondly, interest
rates are going up and the monthly payment that a buyer would have to make a
month or two ago has gone up. For many buyers, this has decreased the amount of
loan that they will be able to qualify for.
If you are a seller right now and you accept an offer on
your home, I strongly advise that you ask the buyer to "update" their
pre-approval letter. Since they have already been working with their
lender, this should a simple and quick process and will assure you that your
buyer is still, in fact, qualified to buy your home.
As always, if you have any questions concerning your
property, give me a call. I always enjoy hearing from you!
Nancy Puder is the broker/owner at Signature Properties in
Arroyo Grande, CA. You may contact her at Nancy@NancyPuder.com or (805)710-2415.
She always enjoys hearing from you!
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