David Lader Discusses 4 Ways The Housing Market Is Different In 2013
The Housing Market landscape is an ever-changing field – sometimes it changes in favor of the buyer, and other times it favors the seller. This year we’ve noticed some marked differences in how the housing market landscape has reformed since previous years, and there is a good chance that you’ll find 2013’s market is the right time for you to buy a home. Read below for our take on how the market is different in 2013.
1) There are less houses for sale
Due to prices not going up high enough for home owners to put their homes on the market, we’ve seen a decline in the overall amount of homes for sale this year. Another cause of the smaller number of listed homes is that increasingly, banks are dumping more and more of their “distressed” sales on investors who are turning them into rental properties, rather than selling to private buyers.
2) Luxury home sales are slowing down
This one is kind of a common sense issue – with the economy (as well as the housing market) still recovering, sales on homes valued at $1 million or more have dropped in the last year. This is also due to the same drop in home listings as we discussed above; it’s just more noticeable when it comes to high-value homes, as they are lesser in numbers than more conventionally priced homes anyway. For buyers looking to purchase these high-end homes, it simply means there will be a smaller pool from which to make a selection.
3) The homes which are available are a little more expensive
As the laws of supply and demand dictate, with there being a smaller supply of homes on the market, the ones which are for sale are seeing a slight bump in price to account for the higher demand. This means that it may be a good time to put your house on the market, but the difference in prices from previous years may not be substantial enough for many home owners to make that plunge.
4) New homes are being built again
As another direct cause of supply and demand, we’re finally starting to see the construction of new homes take place again. This means that in the coming year, the inventory of listed homes should balance out, though you can expect these new homes to have a larger price tag than their pre-existing counterparts.