Jun 23

Wait to sell… ah, to do or not to do?!

Ah, that shifting ‘window of opportunity’

Sellers have a current window of opportunity of 90-120 days to take advantage of selling their homes for maximum price. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite, as increased downward pressure on home prices will likely continue.

Why renewed downward pressure?

Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes. However, this inventory bulge will inevitably plop onto the market… and, again, depress pricing.

In Capital Economics latest look at the housing market, economist Paul Dales says that the current double dip in the market won’t reverse course quickly. He argues that the low level of demand isn’t something that a general economic recovery can easily fix, and predicts that the downturn may last into 2014.

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