Home Prices are Going Up. So What's In it for Me?

Here is the good news to almost everyone ever. They are starting to build again and from most major sources the prices of houses are going up. Some areas are going up quicker and steadier than others, but they are heading upward. If you're a buyer now is the time when you can still get into a home an a lower price than normal, but not at the cheapest of cheap prices to ever cheap. That means that while you'll still be able to find deals out there, you'll have greater competition for the purchase of that house.




Remember with single family homes, their price and value is based on other homes and direct competition on that house. In most markets home buyer operates on a blind bidding systems. (Some places and foreclosure flat out do auctions or non-blind bidding). So if there are three people going after a house. Who ever presents the best offer wins the bid. In the near to distant future i'll write about offers, since the best offer is not always based on price.

If you are working with a skilled Realtor they will still be able to find you move in ready homes that are bellow their true value, and way bellow the sentimental value you'll create once you move in. There are many different value waves and interpretations on value. Your local Realtor will better be able guide and direct you on which areas of town to be looking at if your looking for a growing area, stable area or how ever you'd like to price out your living arrangements.

If you are a seller who has been wanting to sell. Check with your local Realtor to see if the prices are close to what you want them to be at. If you're looking to get the price you almost had in 2007. You may be holding on to your house for longer than other sellers. Sorry, my opinion is that till enough of the population and the echo boomers are earning money to buy houses in that price range. It will take longer to get back up to housing boom prices. The prices are coming back. Remember that from early 2000 till around the bursting of the bubble of 2006. The growth of prices out paced, inflation, appreciation, and even the value of the homes themselves. So if your waiting for price an “investor” offered you in 2005. You'll be waiting longer than other.

I'll use my life as an example. The condo I currently live in. Around 2005-2007 my exact condo type model and size was selling for around $110K- $120K. My wife and I got it for aournd $80K and are looking to sell it for around $90K. We have neighbors who refianced around 2006 and they can't think for selling for bellow $115K. They may have to wait longer than my wife and I will. Since we're selling at what they're currently worth now. Of course if some one wants to offer me $115K I'll take it.

With the current pace of life, housing needs change quickly. Four years is a life time. If you're in a similar situation as I am, where you bought bellow market and you can sell. Now could be that great time where you can sell for more than you bought and move into another house that is still slighly bellow market.

I am hesitant to say that it is neither a sellers market nor a buyers market. In certain areas and price points its both or neither. Looking around and with the buyers, sellers and clients I am working with it appears as though there is greater competition for the buyers on certain homes, but there are still plenty of homes on the market.

So now that home prices are going up what's in it for you? If you're looking to sell you can get more than you could for the last 4 years and transition into a similar or better home. If you're looking to buy you can still get in on some under valued real estate before the prices begin to spike. You'll also be setting yourself up for greater possible capital gains later, and more negotiating room if you decided to sell in the future.


Sincerely
Joe Nickels
Realtor, Lifestyles Realty, INC