January 15th, 2014
Rising home prices and low inventory will make 2014 a good year to sell a home.
As the housing market recovers, consumer confidence increases and jobs data yields more positive results, sellers have more leverage for negotiating higher asking prices. When the level of inventory is factored in, intense bidding wars create the potential for a final selling price beyond the initial asking price.
According to the National Association of Realtors, the median price for an existing homes was $196,300 in November 2013, an increase compared to $180,600 in November 2012.
Consumers are rushing into the market with the expectation that there may not be any affordable properties left if they hesitate. Even with rising interest rates, homebuyers are not dissuaded from purchasing a home.
Individuals who are selling their home to relocate can expect a profitable transaction, which can be beneficial if they are looking to purchase a new property at their new location. Given that sellers have the upper hand, those who want to buy a new home will need the funds to win their own bidding wars when the time comes.