Last month we talked about how the glass is half full and rising, and if the latest statistics for home sales in Hampton Roads continue in the same direction, our glass will be past half full by the end of the year. The number of homes for sale continues to shrink, and buyers are starting to complain that there aren’t enough homes for sale. Looking at year over year numbers, there are 10.76% fewer homes for sale in January 2017 than there were in January 2016. The year over year numbers for January also fell for the average days on the market (down to 118 from 125) and the month’s supply of inventory (down to 4.37 months from 5.37). Plus, the number of homes that went into pending (under contract) status in January 2017 was the highest for January since 2007.
The big question, is will this continue throughout the year or are we seeing a surge of buyers due to the rising interest rates? Interest rate changes make a huge difference for buyers. If a buyer is using a normal 30 year loan to buy a $225,000 house and the rates go up one percentage point they either have to pay about $115 more a month, or spend $25,000 less on a home to keep the payment the same. Clearly this will matter to buyers, so even though rates can go up a point and still be historically great, it will have an effect on buying power.
Now is the time to get your home ready if you want to sell this year. We are happy to do a quick, no obligation walk through of your home. We can share with you some tips to help you get your house ready to bring top dollar, and tell you what your house could sell for in this market.