More real estate agents saying 'Don't sell yet'
Still, a majority think now is a fine time to put a house on the market. And if you are thinking of buying, this could be a good time to start looking.
This post comes from Christine DiGangi at partner site Credit.com.
The survey, conducted Dec. 12 through Dec. 14, showed 65 percent of agents saying it was a good time to sell, down from the 72 percent who said so in the third quarter and the 86 percent who said so in the second quarter. The data is not seasonally adjusted, and the report did not provide a year-over-year comparison for the statistic, but a spokeswoman for Redfin noted the shift reflected agents' observations that the market is starting to balance out after 2013's spike in home sales and prices. Fifty-six percent of those surveyed said now is a good time to buy, which is consistent with the third-quarter sentiment.
A lot of potential homebuyers put their searches on hold during the holidays, but sellers have been dealing with more than just a seasonal decline in shoppers.
They've also been battling their unrealistic expectations of how much their homes are worth -- 63 percent of agents said that was the largest obstacle faced by sellers in the fourth quarter.
Home sales and prices have continued to see year-over-year growth, according to the latest DataQuick real estate numbers, but mortgage rates are also on the rise, which agents expect may price some buyers out of the market. In the Redfin survey, 39 percent of agents said sales and price gains would be severely limited if rates hit 5.5 percent in 2014 (they’re just above 4.4 percent at the moment, according to Bloomberg).
Despite agents’ seeming decline in enthusiasm, it remains a sellers’ market -- shopping for a home in the off-season has its benefits. Buyers, on the other hand, are complaining of a limited inventory of unsatisfactory homes. Agents identified the small number of homes for sale as consumers’ main frustration in the homebuying process.
If you're looking for a good deal on a home, it's not a bad idea to browse during the off-season, because the market tends to be a little less competitive in the winter than in the summer. Just as you should consider many options for the home, shop around for a good mortgage — to help with this, credit scoring models count multiple mortgage inquiries made within a 14-day window as a single inquiry, so your can find the best deal without hurting your credit scores.
More from Credit.com:
- Why you should check your credit before buying a home
- How to search for your next home
- How to refinance your home with bad credit
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When I became a Realtor in 1985, mortgage rates had come down to 12% from around 17%. We told people it was a great time to buy a house. In the next 8 years, as rates came down to 8%, we told people it was a great time to buy a house. It's always a great time to buy a house for some people. If you wait to buy a house until the value of your present one increases, the value of the one you buy next will also have increased. The only time you "make money" is when you sell your house and move to a rental.
(To the poster who claimed real estate agents were all crooked, some are and some aren't, about what you'd expect in any line of work. Catholic priests haven't been getting very good press lately, but I would guess that there are some who are not molesting children.)
Three things I want to see play out before I go and buy:
1) Obama care tax filings...I want to see just how ugly this is or not is and what it does to the economy and the middle class
2) ATR - Ability to Repay...cuzz of Dodd Frank Act banks must now prove a borrower’s ability to repay (Self-employed, small biz owners, fixed income, etc.) gonna have to prove income, this may mean less "Prime Qualified Buyers". Vice Versa it also may help standardize things and hopefully bring investors back to ABS securitizations = more liquidity and $$$ for banks to lend.
3) End of Mortg Tax Credits = Last i checked the PMI and Loan Forgiveness tax deductions were expired...doubt that can help things if they let those expire..
Ton of uncertainty to me.
As a former real estate agent, I did not advise people to buy or sell. Instead, I asked them why they were buying or selling. When the market tanked, I did advise people to try to hang on until the market turned around. But I also understood when they explained why they needed to sell in a down market and we strategized on ways to get the best possible price, from cleaning up the yard to putting in new carpet.
Everyone's circumstances are different. Even if the market is down, if you have to relocate, you have to sell. If you've lost your job, you have to sell. If you are ready to buy, and can qualify and find a house that will meet your needs, then buy. I have seen a fair number of market crashes. Eventually, however, the market recovers and housing prices begin increasing. So if you're planning to stay awhile, purchasing in a down market is just fine. If you're planning on moving in a year or two, you should probably not make a purchase.
You have to know the individual to know whether or not they need to buy or sell. To claim that it is a good time to sell, based only on market conditions, is a mistake.
Just listed an $80,000 house that was worth $106,000 in 2005 for sale at $43,000
why? because I can, and I want to sell it.
the whole point of selling a house is to get rid of it, the price is ALWAYS negotiable
Look, a thing is only worth what someone will write a check for. "Value" is just a concept - and sometimes the scryers are right, other times not so much.
Willy J: There are good real estate agents and rotten ones. In the end, the seller always gets to decide and should do their homework. Of course, I CAN sell my own house. With enough time, money, and energy I can do damned near anything. I could learn to fix my car! The point is do I want to? There's more than one way to sell or buy a house, but choosing to use an agent does not make anyone an idiot.
I hope someone who buys it is someone who just couldn't afford to buy a home any other way.
Shame on you for being such a person who would get enjoyment out of taking advantage of someone else's heartache. I know it's happening...but that's no reason to gloat over it or plan a lowball offer to anybody. Be fair and offer them what the market prevails at. I'm sure they worked hard for every penny it took them to buy that home in the 1st place. And remember.....it CAN happen to you.
Good luck to you anyway. I hope you eventually find the home you want and are happy there. It's good that you can finally afford to buy your dream home. It's unfortunate the rest of us were ripped off. Just please have a little bit of compassion in your heart, as you walk into the front door of your new home.
Redistribution won't be complete until Obamaville seizes the keys to your home.
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