“You can’t get a loan in this country without a job and good credit.” – The big difference between the housing market now and seven years ago, as told by a Good Morning America reporter, Rebecca Jarvis, after showing a chart on home price increases on average of 12.2% nationwide with the greatest change in San Francisco at 24.5%.
Rebecca’s suggestions for success in this market included suggestions such as “Know the Price,” “Don’t Dawdle,” “Be the Back Up Buyer,” “Get Pre-Qualified,” These are all great points. Regarding getting pre-qualified- I say get pre-approved. There is a difference and saavy sellers do not need to accept an offer from someone who has been pre-qualified when they likely are sitting down to review multiple offers. A great agent will help you understand how to write a strong offer that will be considered and hopefully accepted.
What’s fueling this housing market surge?
-lower interest rates (yes, they have crept up %0.75 and this will impact your bottom line, but they are still incredibly low)
– Supply and Demand: We have more of a demand for housing than we have inventory. A healthy market has about a 6 month supply of inventory, this means that if no additional houses were to enter the market for sale it would take about 6 months to sell every property that is listed. What is the inventory in the Puget Sound area? 1-2 months! Not a healthy inventory and one factor that has led to multiple offers being written on the same property, offer review dates set for five days after a home hits the market, and the necessity for a pre-approval letter before you start seriously shopping.
– Time of the Year? It is the end of the summer. As a mom I like to get everyone settled before school starts. This is not always the case for other people. If this IS how you feel, I would suggest that once you have your pre-approval letter in hand, you can expect the process from your Buyer’s Consultation Meeting to Getting the Keys in Your Hand to take at least 5 weeks, depending on how motivated you are and how well your agent has listened, answered your questions, and how great your agent and his/her team are at what they do. If you are paying cash, the process can take days as opposed to weeks.
Don’t Just Take My Word for it! Here are some links to other media sources on the housing market:
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As a Buyer’s Specialist on an outstanding team we use our resources, time, and energy to help home buyers make their dreams come true. In our experience, many agents rely mostly on the multiple listing service – we recognize that with the often limited inventory in our area, this will not necessarily be enough to find the best candidates for our clients.
It may sound a little simple-minded, but going to work for my clients is like a treasure hunt. We enjoy the challenge every step of the way…and there is nothing simple minded about that!