Is Now a Good Time to Buy? Is It a Good Time to Sell?
Trying to time the real estate market can be as successful as timing Wall Street – it rarely happens. After this winter’s slump, the sales of newly constructed homes have begun to rise. Purchases of brand-spanking-new, single-family residences are up about 16% from January, but remain down about 2% from a year ago, according to the U.S. Department of Commerce’s monthly new residential construction report.
Median sale prices of the new homes in the U.S. rose 6.1% in the first quarter of 2016, to hit $301,400 according to the report. Prices were also up about 2.6% from the previous year.
Many buyers are looking for new construction as they believe the lack of residences for sale is putting the squeeze on aspiring homeowners, but the number of available used properties is on the rise. There were 236,000 new residences for sale last month, according to the report. But buyers signed on the dotted line for only 44,000 of those homes.
The main issue is that there are simply not enough homes priced at the right level – entry level, that is. Only about 2,000 buyers were lucky enough to close on dwellings priced to move at less than $150,000. New houses in the $200,000 to $299,999 range attracted the largest buyer group of 16,000. About 11,000 buyers purchased homes priced from $300,000 to $399,999.
New homeowners in the South picked up the keys to more than half (25,000) of those new homes, according to the report. Much of that is because companies are continuing to move more workers below the Mason-Dixon Line, where the cost of doing business—and living—is much cheaper than in cities such as San Francisco and New York. In the past few years, some southern states have seen an explosion of home construction and a slowly increasing inventory of used residences.
So is it a good time to buy? Well, if you are looking to avoid rising rental costs, buying a home, especially in the South, is the way to go. Interest rates are still very attractive. If you do your homework and find an affordable neighborhood, it’s one of the best ways to manage your finances over time.
How about selling? With so many prospective buyers, it couldn’t be a better time to sell. If your house is in prime condition, it will fetch top dollar.
And don’t forget, using a REALTOR® has been proven to be the best way to buy and sell a home. We are professionals at Deon Cannon Realty and we’re here to serve your real estate needs. Call us at (404) 630-2985 and we’ll work with you right now to develop a strong and sensible plan to sell your home or find the one that’s absolutely perfect for you.