Low Housing Inventory is a Win for Home Sellers
Because of the 2007 housing crisis, builder’s confidence in the housing market has not come back to the strength and speed it was before 2007 when they were selling everything they had for big prices. Well, because of that low confidence housing inventory dropped and has continued to stay very low. But there is no shortage of potential buyers.
When buyer demand for homes is higher than what is available for sale, it is a great time for existing homeowners to sell. Here are some ways that a homeowner will win if they are ready to sell.
- Higher Prices. With more buyers out there than homes, buyers end up in bidding wars for houses they would like to purchase. This competition drives up home prices. If you are a seller, this can work to your advantage and possibly get you more money for your home when you close on the deal.
- More ROI (Return on Investment). Not only are prices rising but homes are gaining value which in turn increases the equity you have in your home. According to the latest Homeowner Equity Insights Report, CoreLogic states: “In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity.” This resulting year-over-year growth in your equity means you will have a higher down payment for your next purchase, or you can put some aside as savings for the future.
- Better terms for sellers. Homeowners wanting to sell are in a better position today to get what they want than ever before. Chances are you will have the opportunity to choose between multiple offers so look at the one that gives you the best terms and the best deal.
So, is selling your home during a low inventory era a big deal? Yes, today’s market gives seller better negotiating power. But be fair warned, it won’t last forever. New home builders are gaining back their confidence and new housing starts are increasing. If you want to take advantage, contact me for a discussion today!
Real Estate News
Now for some not so sunny news. Forbes is reporting that delinquency rates are at a 20-year high and worse than 2008. They say there are predictions that at least two million mortgages will soon go into default. There is an estimate that six million homeowners missed their mortgage or rent payment in September. Also, various moratoriums on foreclosure has delayed lenders from being able to begin processing their defaults. Now Forbes is predicting that the upcoming supply in foreclosed homes and those that are being sold to avoid foreclosure is going to overwhelm the demand. They are predicting a tsunami of foreclosures that will hit the market just like they did during the 2008 crash and people will again be in a negative equity situation. The point of this Forbes article is that if you are thinking about selling do it now while the market is still on top. But if you have cash and are looking to upgrade your residence in your area, then maybe a foreclosure or auction sale would be a good grab. The biggest factor will be timing and trying to predict when it will happen.
Local Greenville SC News
A local real estate investment group, South Street Partners, are once again looking locally to find opportunities in and around Greenville SC. So, they began looking into The Cliffs with its lake and mountain properties. With amenities already existing it turned into a win-win situation. Their goal now is to make it more family-centric for existing and new homeowners and to begin building new homes. They have set up Cliffs Builders to handle that. Homes will range from turnkey cottages to higher-end spec homes with various floor plans and interior packages. Sales are up with the third quarter coming in around 166 percent increase over last year.
People are on the move and I am ready to help you buy or sell in the Greenville area. Please contact Victoria Cottle by email [email protected] or call (864) 275-3953 for your real estate needs in the Upstate of South Carolina!
Victoria Cottle is a Realtor? in the Greenville South Carolina area and if you, a friend, or a family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.