The 5 W’s in Today’s Market

What is going on in the current market?

            The real estate Market has come a long way since 2005.  In 2005, the average price per square foot was $246, in 2012, it was $103, and today it’s $161.  We currently have about two month’s inventory, and the prices have overall stabilized.  Houses that are listed for $315,000 and less have a little more pressure since the PMI has decreased, giving buyers a higher mortgage limit. 

Who is in the market right now?

            We’re seeing a lot of first time homebuyers getting preapproved and taking advantage of the low interest rates.  However, something we haven’t seen in the market for a while are “move up” buyers.  These are families who already have a house, but would like to purchase a larger property.  When move up buyers come into the market, it shows that homeowners are more optimistic with the economy long term.

Where is it hot?

            Homes under $200K are the hottest right now.  This is most likely due to having both first time buyers and investors taking advantage of the lower end of the market. 

When is it a right time to buy or sell?

            When it is right for you!  You are the only one who knows if your situation is ready for either entering the real estate market or moving to a different house.  If you are considering a move, do not wait too long as times are changing.

Why?

            Interest rates are still at historic lows and home prices are still affordable.  According to the Federal Reserve. The net worth of a homeowner is 36 times greater than a renter.