Well, if you got dressed this morning (December 23, 2008) based on the California, Arizona or Florida weather forecast, you would be very cold.
Our temperatures were around ZERO, but in those states it was much warmer.
And if you are not selling or buying a home because of the dire reports of the housing market based on reports from those states, you might just as well be “out in the cold.”
Thirty year fixed rate mortgage costs have hovered around 5% per annum this month, so the opportunity to find a buyer for your home is greater than ever. Likewise, the monthly cost to own a home has rarely been less than right now.
So, what’s holding people back?
News stories report declining home prices, in some markets by as much as 25% since the bubble burst.
News stories report massive inventories of homes increased by bank owned foreclosure properties.
News stories report that there is a shortage of money to loan.
BUT IN OUR AREA OF KANSAS, none of these things is true. There were 1,217 single family homes listed for sale in the Multiple Listing Service of the Topeka Area Association of REALTORS(R) on November 30th. That is about 7.5% fewer homes than have been for sale on November 30 of the three prior years, and 11.2% fewer single family homes for sale than last year.
While the number of homes sold this year is down compared to the past few years, the Topeka are reports an average of 222 homes sold each month this year. That means that the 1,217 single family homes on the market only constitute a 5.5 month supply for buyers based on sales this year! That’s what most real estate professionals would classify as a “Sellers’ Market.”
So, what about values? Those 1,217 homes for sale on November 30 this year had an average asking price of $155,976, while the 1,370 homes on the market a year ago had an average asking price of $150,139. And, of the homes sold this year, the Multiple Listing Service data shows that the selling prices were about 97% of the asking price. So, this is not a bad market for sellers either.
Financing? If you have reasonable good credit scores, 97% FHA financing is still available as well as 15 and 30 year conventional financing from a host of honorable local lenders.
So, this is not the time to sit on the sidelines. In our area, it is a great time to sell and/or buy a home. Call one of our well-trained Coldwell Banker REALTORS(R) today and find out what is waiting for you. (And don’t forget if you haven’t owned a home for the past three years, you may qualify for up to a $7,500 interest free loan if you buy a home by June 30, 2009.)
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Bryon R. Schlosser, CEO
Griffith & Blair American Home Services |
