Sell Your Home Today - Part 3 of 3

Part III - New Construction will Soon be Your Competition  

 Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. As an example, the National Association of Realtors revealed, relative to last year, year-to-date new home sales are up 19%.

These ‘shiny’ new homes will again become competition as they can be an attractive alternative to many of today’s home purchasers.

Here are the numbers regarding new construction about to come to market from the Census Bureau:

BUILDING PERMITS

·         Single-family authorizations in February were at a rate of 600,000.

                This is 25.5% above February 2012.

HOUSING UNDER CONSTRUCTION

·         Single-family housing starts in February were at a rate of 618,000.

                 This is 18.5% above February 2012.

HOUSING COMPLETIONS

·         Single-family housing completions in February were at a rate of 574,000.

                 This is 32.9% above February 2012.

As we mentioned, new construction can be strong competition to a seller of an existing home. It may make sense to list your home before this new inventory makes its way to market.

The Stephens & Stephens Recap: This three part series posted over the last three days was written by the KCM Group & Steve Harney, our trusted advisors to the real estate market that we follow religiously. We posted this series because it is exactly what we are experiencing in the Metro Atlanta market: strong buyer demand for housing, low inventory levels, and new construction on the rise. These three things have created an interesting market over the last three months. Basically, we are in the middle of a "frenzy" as Rebekah & I call it.

When a home hits the market, if it's priced well and shows well, we are typically seeing it go "under contract" within the first 30 days on the market (our last two listings have gone under contract within the first 48 hours). 

With inventory levels low, meaning there aren't enough homes on the market for buyers to choose from, many homes end up with multiple offers on them. This creates a great situation for the seller; more than one offer to choose from and typically a great sales price. 

For the buyers, it can be frustrating and upsetting when competing with other offers. Because there are multiple offers being made, many buyers choose to increase their offer price, even going above the list price at times (see our post from last week "Should I Increase My Offer"). This creates a fabulous sales price for the seller. In addition, the increased prices buyers are offering is creating appreciation in many communities. Some communities are seeing $10,000-$15,000 appreciation rates in just 30 days when just one or two homes sell at higher prices. 

Bottom line, it's a great time to try to sell your home! All three factors discussed in this series are reasons why we believe now is the time to sell! Buyer demand is strong, inventory levels are low, and new construction is on the rise. Call or email today if you'd like to discuss placing your home on the market or if you have questions. Thanks for reading!