By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC ***
The real-estate data firm Attom Data Solutions released a report focusing on home sales across the country, showing the overall trends of 124 housing markets. By looking at homes sold in metro areas and comparing them to how much sellers paid for their house previously, researchers identified the average gross profit in each city. When put side by side, the numbers don’t lie, some experts claim: U.S. home prices are no longer on the rise.
But before homeowners’ despair, it’s important to take a good look at the numbers as well as the overall trends to determine whether prices are just slowing down — not topping out. After all, the same experts agree, many sellers make the most out of their real estate investment when they have more liquidity. In other words, waiting is often the best approach.
Still, when the time to sell is here, there are a few factors to consider if the goal is to make the most of your investment.
While home sales in metro areas have been declining in the past year, many markets remained hot. By March 2019, Redfin reported, San Jose, California listings were up 104%, while in Seattle, Washington listings were up 83%.
Still, markets that were considered hot in the past couple of years have shown a considerable decline. That is the case with Orange County, California whose first-quarter sales fell 20% from the same period last year.
If your city’s housing market is showing a considerable decline in sales but the listings continue to grow, it might be time to lay low until things pick up again.
Other signs that your city’s housing market is going bust is a considerable drop in bidding wars surrounding hot metro areas, a reduction in asking prices, and a major increase in the number of home listings in the hottest markets.
- 19 Jun, 2019
- Josh Smith