#paradisevalley, Real Estate

Real Estate 2018: What to Expect www.ErinNewmanFineHomes.com 480-466-8193

The holidays have passed and the most common question we get currently this time of year is, “What’s going on in the market?” It’s not just potential buyers and sellers who are curious; homeowners always want reassurance their home’s value is going up. The good news is the American real estate market is strong and healthy: home values are up, prices and sales are strong, and millennial first-time buyers are eager to become homeowners.  The local Phoenix Metropolitan area is continuing strong for Sellers.  The local market place in the under $500,000 range was truly to the Seller’s advantage in 2017.  As we enter the New Year 2018, we are down 12% on active listings when compared to 2017 this time this year.  This means that it will continue to be challenging for buyers as the competition is fierce!

For up to date market information REAL ESTATE INFORMATION

We often use national real estate numbers to give us a clearer view of our local market. However, real estate is local, and while statistics and predictions help us understand the overall real estate market, our local market may be different. If you’re thinking of buying or selling, or just want to know how much your home is worth, give us a call! We are happy to advise as to what is going on in your neighborhood.  Many clients are happy to see what is going on in their neighborhoods.

What to Expect in the Real Estate Market in 2018

The American housing market is stronger than ever! Home values, prices and sales had their strongest numbers in 2018, a sure sign the market is healthy and strong. According to the Home Price Index from the Federal Housing Finance Agency (FHFA), property values have increased in 58 of the last 62 months and have increased more than 35 percent nationally. Homeowners continue to build equity in their largest investment—their homes. The Phoenix Metro area saw an average increase in per square foot of 6.2%.  The sales in the $200,000 priced home accounted for 33% of our market sales.

SOLD Morris 10-7-17

First-time buyers are back.

Housing forecasts from the National Association of REALTORS (NAR), the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae all predict existing-home sales will surpass 6 million in 2018, higher than anticipated sales for 2017. Who’s driving the surge? According to NAR, millennials who have put off buying a home are ready to buy. While they may have avoided buying a home due to student debt and limited employment, many are entering their 30’s, a time when their attention turns to marriage, family and setting roots with home ownership. They’re predicted to be the driving force behind home and condominium sales from now until into 2020. (Source: MarketWatch)

What does this mean to you? Renting is only costing you money! If you’re a millennial who’s been on the fence about buying, now is the time to act. Give us a call to answer your questions about the market and the buying process.

Renters are embracing home ownership

Additionally, many renters who’ve resisted buying are starting home searches due to the economic weight of rising rents. This year’s home buyers seek to take advantage of comparatively low interest rates and, in most cases, static payments each month—an advantage of home ownership. Rental costs will only continue to rise; if you’re thinking of buying, now is an ideal time to do so. Our local market has increased significantly in rent amounts as there is a shortage of leases available.  When you buy a home your mortgage builds equity into your home.  This will increase your financial worth in the long run.

What does this mean to you? Every month you pay rent, you lose the opportunity to build equity in a home of your own. Break free from the limits of renting and invest in your financial future. Come in the office and we’ll discuss your options.

Home prices are on the rise.

According to NAR, the median existing-home price not only increased 6.0 percent year-over-year in October, it’s also the 56th consecutive month of year-over-year increases. Prices are approaching the pre-recession peak.

What does this mean to you? Home prices, and subsequently home values, are increasing. If you’ve been waiting to list your home until you know you can sell it for what you think it’s worth, now is a great time to do so. We’ll be happy to give you a comparative market assessment of your home and help you get your home in list-ready shape.

Home Valuation

If you’re in the market to buy, be prepared to act.

Homes were on the market for the shortest amount of time recorded since 2009: 52 days. The increase of qualified buyers in the market along with the increasing efficiency of the real estate process means homes are selling faster than ever, and in many cases buyers are engaging in bidding wars and paying over the list price to get the home of their dreams.  This is why it is crucial for you to have a pre-qualification form with a local lender today.  You also need to know what our market is like prior to entering this process.

What does this mean to you? The home you have your eye on one day may be gone the next. In competitive markets, be prepared to come to the table with a competitive bid.

Looking for a new home?

New-home construction will increase to an average of 1.5 million per year to 2024, according to a report from NAR. However, experts anticipate housing starts will only increase to 1.22 million in 2017, which is less than the 1.5 million new homes required to keep up with growing demand. This inventory shortage of new entry-level homes—typically purchased by first-time buyers—may drive up prices in some areas. Home builders have been focusing on multi-family construction for the last few years, but this type of construction has begun to level off providing hope that builders will once again focus on single-family home construction. However, stricter proposed immigration policies may impact new home construction and tighten inventory.

What does this mean to you? First-time and repeat home buyers agree—there are plenty of advantages of buying a new home. Whether you want a home customized to your family’s needs or you don’t want to bother with age-related maintenance, a new home has much to offer. Having a Buyer’s Representation is an important consideration when purchasing a new home. Give us a call to discuss your options.

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Affordability pressures are increasing in many markets

Housing affordability in many of the nation’s largest cities has declined over the past few years, a trend that is expected to continue in 2018. However, there is hope. NAR created the Affordability Index to measure the affordability of homes across the United States. The Affordability Index assesses whether the typical family earning the median family income can qualify for a mortgage on a typical home based on the prevailing mortgage interest rate on loans closed on existing homes from the Federal Housing Finance Board.

The NAR Affordability Index is 170.2 (composite) and 169.8 (fixed), meaning a family earning the median family income has 170.2 percent of the income necessary to buy a median-priced, single-family home. Nationally, the qualifying income is $41,616, but it varies by region. In the Northeast, the qualifying income is $45,024. In the Midwest, it’s $32,640. In the South, it’s $36,960. In the West, it’s $61,824.  Phoenix is rated as a very affordable city.  With the mean home price at $240,000 in the Valley of the Sun is a very affordable area to buy a home!BEST REAL ESTATE INFO

What does this mean to you? If you’ve had your eye on a new home, but weren’t sure if you could afford it, you may be pleasantly surprised. We may have homes in our area that meet your needs and budget. Give us a call today to discuss your home search.

 3 Things to Do Now if You Plan to Buy This Year

  1. Get pre-approved for a mortgage. If you’re like most buyers who plan to finance part of the home purchase, getting pre-approved for a mortgage will allow you to put in an offer on a home and may give you an advantage over other buyers. The bonus: you can see how much home you can afford and budget accordingly.
  2. Start looking. While most buyers start their searches online, be sure to look at homes in neighborhoods you’d like to live in as well. Keep a notebook to write down what you like and dislike about each home you view in person or online. This will help you narrow down where to look and what to look for in your next home.
  3. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget. Give us a call to make an appointment today!

3 Things to Do Now if You Plan to Sell This Year

  1. Make repairs. Most buyers want a home they can move into right away, without having to make extensive repairs. While the repairs may or may not add value, making them will give your home a competitive advantage over other similar homes on the market.
  2. Get a Comparative Market Analysis (CMA). A CMA not only gives you the current market value of your home, it’ll also show how your home compares to others in the area. This will help us price your home to sell in our market. Call us for your free CMA!
  3. Start packing. Help your buyers see themselves in your home by packing up items you don’t use regularly and storing them in an attic or a storage space. This will make your home easier to stage as well as make it easier to move later.

Are you thinking of buying or selling? Would you like to invest in property?

Whether you’d like to buy or sell a home this year, want to know how much your home is worth, or have general questions about our local market, give us a call! We’d love to discuss the market with you. Investing is a great way to build wealth; we can walk you through this process also.

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BEST REAL ESTATE INFO

Real Estate, Selling Your Home, Valley of the Sun Communities

The Guide to Hiring an Amazing Real Estate Agent in the Phoenix Market Place www.ErinNewmanFineHomes.com 480-466-8193

 

Buy Sell Dice 11-22-17

When you’re buying or selling a home, it’s critical to work with a qualified real estate agent.  Real estate involves big dollars; this is usually your biggest purchases and sales that you will make in your life.  You need to find not just a professional, but an amazing agent and a market expert. So how do you ensure you’re hiring an amazing real estate agent?

There are currently more than two million real estate professionals in North America.1,2 With so many options to choose from, how does a prospective home buyer or seller choose the correct agent? According to the National Association of Realtors®, trust and reputation are the top deciding factors consumers use when hiring an agent.3

But how do you measure trust and reputation … and what criteria can be used to help you make your decision?

In this guide, I have outlined the top attributes that amazing agents possess, as well as the questions you can ask to make sure you’re working with the right market expert to achieve your real estate goals.

5 ATTRIBUTES OF AN AMAZING AGENT

As I mentioned above, not all real estate professionals are the same. And it’s easy to be overwhelmed by the options and information about working with real estate professionals to buy or sell your home. In fact, many real estate markets are over saturated with agents.

To help you understand what makes top agents and market experts stand apart from the competition, following are five key attributes of an amazing agent:

finding-a-home

  1. A Pricing Specialist

If an agent has their real estate license, they know the basics of the transaction process. They know what goes into buying and selling a home. However, there’s a difference between knowing the process and navigating it for an ideal result. This ideal result often means buying or selling a home for the best price.

For buyers, amazing agents have a strong understanding of market trends, competition, and how to make your offer attractive to sellers. They can help you identify and secure a deal to ensure you get the home you want, within your desired budget.  The market changes daily.  Currently we are in a strong Seller’s Market that requires knowledge in being competitive in making offers.  Many buyers are not able to buy the home that they want due to the competition in the market.

If you’re selling a home, market experts have experience pricing homes optimally for the market, and creating pricing plans to minimize the time spent selling the home. This will help you sell for your desired price, and avoid costs like additional mortgage and utility payments.

One advantage I possess as a valley agent is my extensive knowledge. My NAR certifications have added tremendous value to my clients and business practices.  As a Pricing Strategy Advisor designee, I have had extensive training on proper pricing which benefits both buyers and sellers that I work with.

NAR PSA designation
PSA

Takeaway: Whether buying or selling a home, pricing can be tricky. Market experts can help navigate best-possible pricing strategies, and also secure the home you want within your budget.

 

  1. An Effective Time Manager

It’s common to underestimate the amount of time it takes to buy or sell your home. The average real estate agent may not be utilizing the latest tools and technology to make the transaction easier and more cost-effective for their clients. Market experts have tools and strategies at their disposal to minimize the amount of time you spend on the process.

For sellers, market experts can make sure you only deal with qualified buyers (requiring documentation), not the “looky loos” who can waste your time. We also utilize the latest marketing practices to advertise and price your home effectively, ensuring it gets sold quickly for top dollar. Knowing what marketing works is essential to getting a home sold.

When looking to buy a home, inexperienced agents may waste your time by showing you homes that are not a good fit for you. A market expert knows how to prioritize your needs and wants to guide  you to the ideal home within your budget. They also know how to identify possible problems in homes.  This will help save money during the process.

Takeaway: Even a well-intentioned agent may not have the skills, tools or technology to make the experience easy for you. There are lots of hidden activities that may take up unexpected time, and a market expert will save you time and energy.

alarm clock

  1. A Market Insider

While most agents can pull market stats about a neighborhood, community or city, they may not understand important trends or developments that would affect your transaction. These can include the state of the school district, issues with a homeowner association, new businesses in the area, zoning rules or trends in home prices.

Market experts live and breathe local real estate and effectively know the trigger points for buying and selling in this market. We also stay current on effective marketing and negotiation practices, resulting in our track record of success.  Using measurable scientific data is the only way to analyze the market.  Emotion and guessing does not breed success in a transaction.

For sellers, we understand what features of your home and neighborhood are assets in the selling process. And for buyers, we share a deep understanding of market factors, including school and neighborhood quality, crime statistics, speed of sales and more.

As a local native, I thrive on the market and the activity that is current.  My background is in science, so I can look at concrete data and articulate it in an appropriate fashion. Passion and excitement about our beautiful communities is also an attribute that has contributed to my happy client lists.  It takes energy to create success in our local market.

Takeaway: Getting relevant and specific market knowledge can be difficult and time-consuming, which is why many real estate agents don’t have it. Whether you’re buying or selling a home, an experienced real estate agent is often the best source of information about a city, neighborhood, or even street … we’re literally conducting market research every day.

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  1. A Strong Negotiator

Amazing agents truly set themselves apart in their ability to negotiate. Unfortunately, a large portion of agents don’t commit their full-time to increasing this key skill.

Real estate negotiations can be challenging, even for seasoned professionals. It takes skill, experience and knowledge of how to fight for your client’s best interests. While any agent can enter negotiations to buy or sell a home, they may not know the effective strategies to exit those negotiations with the result you want. Protecting a client’s investment is a fuduciary responsibility.

Experienced Realtors focus on negotiation as a key skill. We understand what to do before entering negotiations (establishing the upper hand to set up the best outcome), as well as during the process (when to offer or accept concessions).

Takeaway: Many agents can feel the stress of the negotiation process, and may agree to terms of the buyer/seller. Working with a market expert will help ensure you get the best deal, not just the fastest deal.

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  1. An Effective Closer

Closing a deal fast is often a good thing. For buyers, it means you found the home you wanted quickly. For sellers, it often means you can avoid the added expenses of mortgage and utility payments, and maximize the value of your home sale.

However, an agent solely focused on speed can make decisions that aren’t in your best interests. Top real estate professionals know how to not only achieve your real estate goals quickly, but in the right way to avoid potential pitfalls. Decisions need to be made on what is best for the client; this is essential in all transactions.

Just like negotiations, the paperwork and process of closing a real estate transaction are complicated. And they can be overwhelming for the average agent who hasn’t handled a lot of transactions. Sales contracts, property disclosures, occupancy agreements and even lead paint records need to be executed with precision. Your agent not only needs to be familiar with these, but also stay current on any changes in requirements or regulations.

Market experts have a strong understanding of real estate contracts, timelines, clauses and contingencies within the closing process. In fact, avoiding pitfalls during the closing process is where many sellers find an experienced Realtor is a huge asset.

 

Takeaway: Many agents don’t have a firm understanding of contracts. Because a real estate transaction often involves a significant investment, even a small mistake can mean serious trouble. With that in mind, it’s often best, and most responsible, to work with a true market expert.

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5 QUESTIONS TO ASK YOUR REAL ESTATE AGENT

So how do you know if you’re working with an amazing agent?

The first step would be to “shop around.” Many people work with the first agent they come across without a firm understanding of their level of experience. It’s always a good idea to interview a number of agents before selecting one. If you’ve gotten referrals from people you trust, then you may only need to interview 2-3 agents.

However, it can be tough to know what to ask in the interview process. Here are some questions that can help you qualify the best agent to help you achieve your real estate goals:

  1. Can you send me some information about yourself?

Look for professionalism and consistency. What are their professional accomplishments? Also, try to identify how they approach their work. Look for a business person who has a strategy and solid support system. If they’re a newer agent, ask about their team’s dynamic and accomplishments.

  1. How long have you been in real estate?

The average Realtor has 10 years of experience4. But while longevity is important, even more telling are the number of transactions they have closed or been involved in. So feel free to also ask: “How many homes have you sold in this area?”  There is a big difference in working with a full-time agent versus a part-time agent.  If real estate is not a full time occupation, you may not be getting what you need when you need it!

The important factor in hiring a great agent is one that knows what the current trends are in the local  real estate.  Market shifts change with agents that are not changing with changing markets and technology.

I am an e-PRO REALTOR® which is a designation that teaches what the current technology trends are to be successful in selling a home.  Technology plays a very large role in real estate today.  I know what technology is essential to create a seamless transaction.

NAR e-PRO designation

e-Pro

  1. What will you do to keep me informed?

Do you want daily or weekly reports from your agent? Will the agent be able to meet these expectations? Determine how much communication you want, and then find an agent who will give you the attention and time you want and deserve.

Communication is essential during real estate transactions.  The client should understand and be able to have questions answered in a timely manner.  Knowing what will happen next in a transaction helps both buyers and sellers understand the process and what is happening.

  1. Can you provide me with further resources I may need?

From market reports and pricing trends to school performance and crime statistics, top agents have resources at their disposal. In addition, market experts have built strong relationships with their extended team of professionals, and can often get expedient service or be able to “cash in a favor” for you should a need arise.

     5.  Seller only: Can you share with me your plan to market my property? Many agents will simply put your home in the MLS and wait for it to sell. An amazing agent should have a detailed plan of how to get your home exposure on social media, to their local networks, and more.

GET STARTED

Now that you’re armed with the The Guide to Hiring an Amazing Real Estate Agent in the Phoenix Market Place  and the Top Questions to ensure you work with the best possible real estate agent, you’re ready to start interviewing agents.

I would love an opportunity to win your business; I can show you how I do business that puts your needs first.  Please  schedule a free consultation with me to find out how true market experts can help you achieve your real estate goals!

  • You can call or text Erin Newman 480-466-8193.
  • You can email ErinNewmanAZ@gmail.com
  • Please visit my website at Erin Newman Fine Homes

Sources:

  1. National Association of REALTORS – https://www.nar.realtor/field-guides/field-guide-to-quick-real-estate-statistics
  2. Financial Post – http://business.financialpost.com/personal-finance/mortgages-real-estate/canada-housing-bubble-agents/wcm/b49d4e3a-bd8d-4d1c-9566-bd3d80c8e23a
  3. National Association of REALTORS –https://www.nar.realtor/reports/highlights-from-the-profile-of-home-buyers-andsellers

4.National Association of REALTORS – https://www.nar.realtor/field-guides/field-guide-to-quick-real-estate-statistics

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Home Tips, Real Estate, Selling Your Home

5 Important Reasons To Put Your Home On The Market This Summer

Summer is here!  In most regions of the country, summer is the best time of year to sell your home.  This season makes for an easier transition between school years and people are more interested in looking for new places.  But let’s talk about the other reasons that you should put your home on the market now.

1.)  Demand is great.   The latest edition of Buyer Traffic Report from the National Association of Realtors (NAR) reflects that buyer demand prominent throughout every region. This means that there are buyers out there that are ready and prepared to purchase right now in the marketplace.  In many circumstances, if you have a well-kept home in a desirable community, you may find that multiple potential buyers will make attractive offers for your home.  In other words, it’s important to take advantage of this competitive buyer activity now.

2.) Lowered Housing Inventory– Unless you are keeping up with real estate trends, what this means is we are currently under the 6-months needed for normal housing market.  There are simply not enough homes for sale to accommodate the number of buyers looking for a new home.  Sellers have the advantage in this current market. However, we have a hit a high market for increased equity in 11 years so it’s important to target the sale of your home during this time.  New construction will increase as 2017 closes out so make sure that your home is in mint condition for potential sellers that rivals new homes.

3.) Quick Processes- When a buyer finds the home of their dreams, there are little things more frustrating than a slow process to move in.  As the economic market begins to gain momentum, banks will be inundated with new loans that it has the potential to stretch out closings for longer than anticipated.  However, selling now will make this process quicker and more efficient which will get you to the closing table sooner than waiting.

4.) The Perfect Time for More Space– If one of the reasons you are considering a move includes more house, then it’s important to know that prices are anticipated to appreciate by 4.9% over the next year based on finding by CoreLogic. A higher-priced this year will increase more in raw dollars (both in down payment and mortgage payment) than if you wait until next summer.  While rates are expected to increase in the next 12 months, it’s important to look into your options of locking in 30-year housing expense with current interest rates around 4%.

5.)  New Chapters–  Many people avoid drastic life changes.  But change can be good.  If you are looking for more space, a job in a new city, or want to retire to less space, you can make this happen in the current market regardless of the reason.  Think about the reasons you want to sell and begin a new chapter.  The selling market is yours.

One of the most rewarding things about my job as a real estate agent is making my clients’ dreams come true.  I love when they find the home that is just right for them.  I also love when I guide them through the process of selling their current home so they can move on to the next one.  Let’s talk about the next step in making your dreams happen.

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Home Tips, Lifestyle, Real Estate

Five Remodeling Trend That Are Happening Now…..

Mashing Up Styles
Mashing up different styles adds a unique look to what would be an ordinary room.  Too many patterns may be too much but think of mixing a white wall with brightly patterned pillSouthwestern-Mid-Century-Mashup8ows and an eccentric lamp to suit your taste.  Textured fabrics are a must.

The Connected Home
We can all agree that we live in a technology world.  If you fall too far behind, it’s hard to catch up.  But imagine living in a home that connects all your devices togethers to become more efficient.  Look for options that accelerate your flexibility, convenience, and affordability such as linking your fridge when you are low on milk or a iphone reminder that your carbon dioxide detectors batteries need to be replaced.  How cool is that?

 


Becoming Eco-Friendly and Energy-Efficient
Not only is an eco-friendly home a more efficient way to live, it’s fastly becoming trendy.  Construction of new homes are now using low-impact waste materials such as bamboo and wood to create beautiful earthy spaces.  Steel recycling material and concrete are becoming more popular energy-efficient ways to insulate homes as well.  Upgrading your home in different ways will save you money in the long-run.

Metal Accents
We’ve said it before, metal is HUGE now!  Accenting metal pieces adds a focus element especially when blended with wood to add texture.  Very trend forward, people!
metals

Open Kitchens
Kitchens are truly the new living rooms.  They have become the place to gather, eat over a feast, have conversations, and connect with your family and friend.  New constructions are influenced by open kitchens that allow space and convenience. If you are trying to narrow down which room is most important to renovate, we highly suggest this space!

open kitchen
For more home trend ideas, follow me on my blog at: https://erinnewmanfinehomes.wordpress.com/
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Home Tips, Real Estate

Spring-Ready Your Home!

The enjoyable days of winter are dwindling to an end.  It’s time to do some spring clean-up before the desert heat sets in!  In order to make your home efficient and keep your utility bills down, here are a few things to make sure your home is running the way it should:
spring home

Clean Those Dirty Gutters!  
Debris and water can collect in your gutters and create a host of headaches (wood rot and foundation damage to name a few) if you aren’t paying attention!  If you’re a little iff-y about climbing onto the roof yourself, hire a professional to clean every six months.

De-Bug and De-Pest
Terminates and other insect can wreck havoc on a home.  Hire an exterminator (if the problem is mild, bug bombs can also do the trick) to thoroughly inspect your home for problem.

Check the Roof
Your roof is literally what hangs over your family’s head every night.  Make sure it’s in proper order to make sure there are no missing shingles, loose pipes, or cracks.  Similar to the gutters, if you don’t feel comfortable checking out the scenarios yourself, hire a pro.  Preventive roof work is a must for good home maintenance!

Get A/C Tune Up
If you have ever had your A/C unit give out on you in the heat of summer, you know how expensive it can be to get it serviced or replace the entire thing!  You may want to invest in a good A/C maintenance package that includes condenser and blower unit cleaning, coolant level check and refill, electrical connection securing, duct work inspection, and temperature difference measurement between supply and return.  It may save you lots of money in the long run!

Change A/C Filters
A clean system will help preserve the life of your unit and keep your utility bills in check. Set reminders to change them out every two months.

Check Irrigation System
If you have ever had a busted pipe, you know how you dread the next water bill! Irrigation lines are apt to deteriorate in extreme heat, which may result in broken pipes. Make sure your system is running through the proper channels and watering your lawn (and not the street!).

For more home ideas and real estate advice, follow my blog!

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Real Estate, Selling Your Home, Valley of the Sun Communities

Planning to sell your home? Don’t wait. Place it on the market TODAY!

You probably had to read the headline twice.  Today?  You mean, today.  Yes, we mean TODAY.  Why the urgency?  The 2017 housing market shows that now is the time to sell.  January unveiled great numbers which paths the way for a strong housing market for this year.

for sale
Lawrence Yun, Chief Economist for the National Association of Realtors, said:
“Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence at the end of last year appear to have sparked considerable interest in buying a home. Market challenges remain, but the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate…”

And CNBC says consumer confidence in the economy is fueling the market:
“U.S. home resales surged to a 10-year high in January as buyers shrugged off higher prices and mortgage rates, a sign of growing confidence in the economy.”

A depleting inventory leaves a challenging market.  In order for a balanced market of homes for sale and interested buyers, the inventory would require a full six-month supply of homes.  The current situation is that there is less than a four-month inventory which means a 7.1% decrease from last year.

Admit it.  These statistics are make you look a little more closely about selling.  The increasing demand and low home supply provides the perfect climate for selling your home for the best price.  I’m more than happy to help you in this process to see if the market is hot in your neighborhood.