Wow! After 8 years, the Real Estate market is finally showing signs of turning around!
Ridiculously low interest rates, a lack of inventory, and a pent up demand for housing has created the perfect storm.
The winds started picking up last year as more buyers entered the market. Unfortunately due to low comps caused by years of distressed sales, property appraisals were not coming in at the agreed upon sales price and in most cases buyers were not prepared or willing to pay the difference. Toward the second half of last year, the game started changing as cash buyers earning minimal to no interest on their money entered the housing market by the droves. This in turn created a “demand” for housing and since cash sales do not require an appraisal we started seeing cash buyers pay above the asking price. Although paying above the appraised value is in most cases impossible for the FHA, VA, or low down payment buyer we started seeing non-cash buyers come up with the extra money out of pocket. This change of events has thus increased values and in turn is raising comps.
All of which totals up to the old law of Supply and Demand
Call Purdy Homes for any of your Real Estate needs....Selling, Buying, or Property Management. We consider ourselves to be Real Estate Counselors. We are always happy to discuss your options and give you our solicited opinion!