Part I: 2014 Listing Boom Imminent As Home Sellers Return
Spring 2014 is shaping up to be one of the best listing markets for home sellers since the housing bust of 2007–2011 created a rock-bottom buyers market. Rising home prices and tight inventory have created a perfect storm for home sellers. The secret for top agents in the coming months is how to beat their competition to the imminent listing boom as home sellers return to their local markets in droves.
Listing Rebound Signs Everywhere
Numerous indicator trends point to a hot listing market in 2014 nationwide. Here are some of the most important early indicators.
- NAR reports monthly unit sales have been above year-ago levels for 25 months in a row as of July 2013.
- Roughly 10,000 Baby Boomers are turning 65 every day – and will for the next 19 years – with thousands now planning to sell and downsize to a not-so-big house.
- As the economy adds more jobs more relocation sellers are projected (houses are where the jobs go at night).
- The number of underwater home owners has dropped by 42% from 12.1 million in 2012 to 7.1 million as of the second quarter of 2013, according to HUD figures.
- Sellers with equity are steadily building even more equity as prices increase finally giving sellers more walkaway cash to make significant down payments as buyers.
- For owners that have been slightly underwater (90% LTV), 8.3 million more will have enough equity to sell their home in 2014 without resorting to a short sale, RealtyTrac reports.
- Due to rising prices nearly one in four owners-in-foreclosure now have at least some equity giving them hope that selling without putting cash on the table is in their future, according to RealtyTrac.
Many markets report more sellers listed in 2013 than recent years. But fast sales kept inventory low. Have you seen these signs in your local market too: Tight supply, increasing buyer activity, rising prices, still-attractive mortgage interest rates? We expect all these factors will converge next spring with resales climbing and new home sales doing even better. The home-selling market is poised to leverage this heady mix and pent-up demand to bring a tsunami wave of home sellers into the 2014 market.
Check back later this week for “Part II: How To Make Money From The Coming Listing Boom” which covers how top real estate professionals can take advantage of the coming listing boom in any market.
Dan Gooder Richard is editor of the new SMART ESSENTIALS series of real estate guidebooks that show sellers, buyers and investors everything they need to know to make money in under 100 pages.
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