Inventory (available homes for sale) has been decreasing steadily, leaving less for potential buyers to choose from. Depending on the number of buyers in the market, this could cause upward pressure on prices. Interest rates are trickling upward as well, although the sharpest spike was seen last summer, when rates climbed almost 100 basis points in less than a month. While home prices rose notably in 2013, the jump is expected to be greater in the year to come.
If you're in the market to buy, how do you evaluate what you want? There are a lot of factors people use-the home's layout, square footage, school system, age, style-although the list goes on and on. Some things are more important for certain people than others, and they will apply more weight to the most important. This is expected, but only within reason.
Despite the obvious direction that housing is taking, some people are preoccupied with getting a "good deal." What this means is hard to determine, but layman will likely rely on the spread between list price and purchase price (for instance, the home is listed for $260,000, but they got it for $240,000, and the spread is $20,000 or about 7.5%). Getting a home at less than list price can happen if it's overpriced and the seller is motivated, but if its priced correctly, making a low offer could only cost you the home of your dreams.
Many people have different criteria for the home they want, but whatever your concerns, be informed about the current market and pricing in your area. We are out of the economic recession and the market is coming back quickly, so be prepared to make a strong offer for the property that you feel meets your needs.
For more information about residential or commercial real estate, feel free to contact me at scott@scottmillerrealestate.com or www.highpowerrealty.com.
