Is There Finally a Light at the End of the Tunnel?
3/1/2013
Over the past few years, the pendulum of home sales has swung far in the direction of higher inventory and falling prices. And while this was a favorable scenario for buyers who were able to secure financing, it hasn't done much for the bigger picture. The number of homes in foreclosure in recent years is certainly proof of that. Finally, though, there is a somewhat tentative sigh of relief in the housing market as we're starting to see small signs of improvement.
Economics 101 teaches us about the law of supply and demand. When there are fewer houses for sale, but demand remains the same, prices go up. The Georgia Association of Realtors February report reveals a 30.5% drop in inventory, while pending sales increased by 9.2%. Fortunately for sellers, this has contributed to a median sale price increase of 35%. Other nearby markets show similar improvement.
The falling number of houses on the market is only one factor. Increasing rent prices are encouraging more people to buy rather than rent. In some areas, the population has grown faster than the available number of homes for sale. We can also thank the current mortgage interest rates, which are still near record lows.
We at Coldwell Banker SSK, Realtors work hard to stay current on the latest developments and will help you get top dollar for your home, should you decide that it's time to sell.
