With the change in season from winter to spring, we enter one of the prime times of year for homebuying activity. Kids are almost out of school, and the broad expanse of summer offers time for home shopping, moving, and settling in to a new home before the rigors of academia begin once again in the fall. So it’s no surprise that most families begin shopping for their homes in March, taking advantage of great weather and copious daylight to find their dream house.
If you’ve been eager to move into a new home—such as the beautiful, affordable and high-quality new homes offered by LGI Homes—but are worried about whether or not you’ll be able to sell your current home, this may be the season for you to make your move. Not convinced? Consider this:
Real estate is highly local. Many local economies—particularly in cities throughout Texas—have remained much more resilient than the nation as a whole, and strong job growth and steady wages are underpinning heavy activity in their real estate markets. Many of these places are also outperforming the national scene in terms of real estate, meaning that grim statistics applied to “housing” as a whole often don’t apply to local markets. Even major metropolitan areas in hard-hit states like California and Florida are seeing rebounds in hiring, which is increasing demand for homes and increasing prices.
Low inventories can drive up prices. With so many homeowners unwilling—or unable—to put their homes on the market, those owners who are selling have been able to command higher prices for their homes. Why? The simple law of “supply and demand.” When demand for something exceeds the supply, prices for that in-demand item rise, because the item becomes a premium. In the case of houses, local economies that have strong economic underpinnings support wages and allow workers to buy homes. Those workers want to buy homes, and when presented with low inventory, will often offer higher prices in order to secure a house of their own.
Homes owned by people—and not banks—have an edge. While the prices on foreclosed homes in places like Phoenix may seem attractive to some buyers, those prices are often factors of the poor condition of the homes themselves. Deferred maintenance, structural problems, and even cosmetic issues like stained rugs, cracked walls and broken appliances heavily discount list prices on foreclosures, since many banks sell their foreclosure inventories “as is.” In this environment, well-cared-for homes inhabited by people (and not just spiderwebs!) are hot, as most buyers want a “turn-key” property into which they can move without any work.
As you can see, there are a number of factors that define a “good time” to sell a home, and as both local economies—and the nation as a whole—turn the corner on the recent recession, housing is ready to stage a rebound.
Lucky homeowners who can sell into the curve will not only get better prices from inventory-starved buyers, but will also be able to take advantage of record-low interest rates and sky-high affordability to move into new homes. Why wait to own your dream, when you can make your move today? Selling your current home may be the first step toward owning a brand-new house in one of LGI Homes’ stunning communities throughout Texas and Arizona!