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Aug 22

Why sell now?

Some evidence that home prices are up…

Several pricing indices have reported that on a month-over-month basis, home values have actually ticked up slightly over the last quarter, causing some to call the bottom to the housing market – at least from a price standpoint.

However, it is important to realize that pricing is always determined by supply and demand. And, indeed, demand has shown improvement in many parts of the country. Unfortunately, the supply side of the formula is being impacted by legal issues which are causing a ‘logjam’ for foreclosure homes moving down the foreclosure train track.

Foreclosure backlong of homes

The number of foreclosures coming to market has slowed dramatically by the courts as the banks still struggle with improperly filed paperwork in response to the ‘robo-signing’ scandal from the winter of 2010. However, our foreclosure inventory will eventually find its way to market, and again put downward pressure on values. Here is a chart showing the challenge:

 

 

 

 

 

 

 

 

 

 

Bottom Line

If you are selling, today’s window of opportunity may get you your home’s best price before the anticipated backlog of distressed properties are released later in the year.

Used with permission from KCM Blog, August 10, 2011

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