Discussing the number of homes sold for cash, homes are selling quickly but you still need a Realtor when selling a home and much more!
Homes Sold for Cash Ties the Post Recession High
From Eye On Housing:
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that cash sales accounted for 11,000 new home sales in the fourth quarter of 2017. Cash purchases also accounted for 11,000 new home sales in Q2 2017, but only made up 6.5% of the total. In contrast, they made up 7.9% of purchases in the fourth quarter, a mark not seen since 2014.
It is worth adopting some caution associated with the Census data as they are estimates based on sample statistics. The statistical error associated with the FHA, cash, and VA sales estimates from this data set are relatively high, meaning that although the data are presented as single numbers, the true values may be substantially different.
So this makes me wonder why are so many homes are being sold for cash? Are people looking for a safe place to park their money?
Why the Number of Homes for Sale is So Low
Yet, now the demand is here. In fact, the challenge the housing market faces in 2018 is not insufficient demand, but a paucity of supply. The reservoir of homes for sale is running dangerously low for two main reasons – existing homeowners have less incentive to sell their homes and home builders have not built enough new homes to keep up with overall demand.
While there is a problem with limited supply in many areas of the country, home buyers in the Anderson area can still find a home. The key is to be prepared and represented by a Buyers Agent. There will be competition and frustrations but the rewards can be substantial.
I will admit that the supply can be limited in certain price ranges and areas. Because of the limited supply, it is a seller’s market and some of you may want to consider listing your home.
Homes are selling quickly as a matter of fact…
The Time to Sell a Home Drops Hits New Low
One of the reasons why you should consider listing your home is that the time it takes to sell a home has dropped.
The National Association of Realtors recently reported that the median amount of time to sell a home decreased to a new low 2017! The time needed to sell a home has dropped to only 3 weeks compared to the high of 11 weeks back in 2012.
Check out the chart showing how many weeks it has taken to sell a home since way back in 1987:
Now this is very interesting BUT they are talking about the whole country. Every local real estate market is different and there are many factors to consider.
Anyone thinking about selling their home needs to work with a local experienced Realtor to maximize their results…
Why You Shouldn’t Sell You Home Without a Realtor
I just told you that homes are selling quickly. And you probably already know that home prices have been increasing for several years. This might make some people think about selling their home without a Realtor.
Let me tell you about several reasons why this might not be a good idea:
More Exposure to Home Buyers
95% of buyers are searching the internet for homes for sale according to a recent study. You are on a real estate agent’s website now. Do you have a website that is attracting home buyers?
A successful and proven internet marketing strategy is an essential part of home selling today!
49% of buyers found the home they purchased on the internet. While the market is smoking hot, getting top dollar for your property requires a company that understands the importance of internet marketing.
Consider this snippet from a recent study:
Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.
As you can see, it isn’t just the listing agents website that will be enticing home buyers! A Realtor that utilizes the MLS to “share” the listing with other Realtor websites will expose your home to more potential buyers!
Dealing with All the Different People
It isn’t just the buyer you will need to be prepared to deal with! You will need to deal with the Buyers Agent, the closing attorney, the appraiser, inspector, surveyor, etc etc.
Knowing what to say and what to NOT say can be crucial in getting your home sold quickly and for top dollar!
Correct Pricing is Essential
Most home sellers need assistance is selecting the correct asking price for their home. The list price of you home MUST be correct when it hits the market or today’s buyers will skip it!
Overpricing or asking too much is one of the worst mistakes that people make when selling without a Realtor!
As you can see, there are many compelling reasons to work with a Realtor when selling your home. This is why the percentage of people selling a home without professional help has dropped to 8% from the high of 20% way back in 1999!
Consumer Confidence Is Lifting the Economy. But for How Much Longer?
Amid the constant turmoil in domestic and global politics these days, the economy’s steady expansion has been a source of comfort. But look more closely and you will find that economic growth rests on a surprisingly amorphous base: consumer confidence.
We know that consumer confidence is a critically important advance indicator of economic booms and busts. At the moment, it is forecasting a continuing expansion. Yet the troubling fact is that we don’t fully understand how and why consumer confidence acts as it does.
This does help to explain why I share various consumer confidence indexes. People have to feel pretty confident to make a huge purchase such as a home after all…
Trump Moving On to Infrastructure Push
President Donald Trump plans to use Tuesday’s State of the Union address to build momentum for sweeping legislation on infrastructure and immigration that could buoy the White House and fellow Republicans ahead of crucial midterm elections.
While we will have to wait on finding out the details, it is long past time that we work to improve or repair our infrastructure. But we will have to be on the look out for wasteful spending…
I have thought that instead of bailing out the banks, we could have spent money on infrastructure improvements to create jobs and spur the economic recovery. Why has it taken so long for this to happen?
As with anything coming out of Washington, some will praise this and some will condemn it based on it coming from the current administration. Keep an open mind and let’s hope this actually translates into something good for ALL Americans.
That is all for today! Be sure to check back as I will be posting this week’s Market Report late tonight!