RealtyTrac Reports Increase in Home Sale Profits
RealtyTrac is sharing more good news for the housing market, with reports that home sale profits have reached their highest point since 2007. Those who sold homes in the U.S. during the month of March this year reportedly brought in $30,500 more than what the homes were originally purchased for at the time of purchase. The South Florida market in particular saw a 31 percent increase in sale profits, earning an average of $50,000 more than the home’s original price.
A Healthy Market
Rising home prices suggest a strengthened economy, which will lend itself to an even stronger housing market this year. While this fact is certainly positive, it also means tougher competition for buyers. Trulia reports that one third of listed properties are spending less than 30 days on market. Additionally, a survey conducted by Redfin revealed that 62 percent of agents have reported bidding wars over a listing during the spring of 2016.
In spite of the increased competition, the deck isn’t completely stacked for sellers in this scenario. Even though many properties are moving quickly, some properties that have been priced too aggressively could remain unsold until the list price meets the market’s actual perception of value. Fannie Mae reports that mortgages are becoming easier to obtain, improving the likelihood that hopeful buyers will be able to buy a home, however buyers remain savvy as to pricing and not overpaying. As well, many buyers who have secured a mortgage are buying in the suburbs, a trend which is set to continue throughout the year. This is largely due to the fact that living in the previously much sought-after urban areas has become less affordable for many. Of course, this is market specific and dependent on location.
If the first half of the year is any indication, 2016 should continue to be a busy year for the housing market. While this particular market may present some hurdles for both buyers and sellers, home ownership remains very attractive. With this continued pace of activity in the market, our agents are prepared to facilitate the best possible deals for both sellers and buyers. Call a South Florida real estate agent at Stein Posner today to get started.