Monthly Home Price Index 2013 – Chief Economist for the National Association of Realtors (NAR), the number of available homes for sale has reached a low that has not been seen since 1999. The percentage of buyers in the market to purchase is up over 40% from year ago. Currently the supply/demand ratio is out of balance. The market now can only be described as a seller’s market.
Many sellers are purposely pricing their homes at prices low enough to prompt buyers to make multiple offers in an attempt to be the winning bidder. The sellers usually benefit from multiple offers from buyers. There are those that believe that low balling the asking price is a manipulative act by sellers and causes buyers to enter into a situation of one upping each other in an attempt to out-maneuver each other with no knowledge as to what actual prices the sellers really want for their homes. Monthly Home Price Index 2013.
It is so important to take into consideration comparative property sales when making an offer for a near identical property. Monthly Home Price Index 2013. In addition, the location and condition of the property to be purchased must be taken into consideration when making purchase offers. A bad location will, in most instances, not get better over time and properties that need repairs will cost buyers additional money following the close of escrow. This will actually add to the acquisition price of the properties. Monthly Home Price Index 2013.
The forces that are currently driving the recent rise in prices and the corresponding increase in buyer’s offers are due to several factors, including:
- Ultra low interest rates on mortgages
- Low available of real estate on the market
- High rental rates
- Increase in consumer confidence
- Fear of missing the real estate boat
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