5 Signs the Real Estate Market is Recovering

5 Signs the Real Estate Market is Recovering

…and what that means for you if you are considering buying or selling a home.

We recently came across a great article and wanted to share the main points. New data shows the real estate market is in recovery compared with the past few years. The numbers are based on national data; however, we are already seeing the 5 signs the market is recovering in Anchorage, Alaska.

1.      Asking Price and Rent increased by 5% over this time last year. For sellers, this means you’ll be getting more for your house than you would have last year. For buyers, this indicates an urgency to purchase a home as rent is increasing and it won’t be long until it is more cost effective to buy versus renting. Already, in the Anchorage market, we are seeing instances where renting is more expensive than buying a home.

2.      The Consumer Financial Protection Bureau released new mortgage rules this month. For buyers, especially those who have been hesitant to trust lenders, these rules require all the information you need to be provided up front. The rules are designed to protect you as you purchase a home. For sellers, this is good news because there are a great number of people wanting to buy but hesitating for this very reason. Given these new rules, we expect to see an increased number of buyers enter the market searching for homes.

3.      Delinquencies and foreclosures are both decreasing. In fact, the foreclosure rate is at its lowest in 4 years. For the economy as a whole, this is good news. It means people are able to pay their mortgages rather than losing their homes.  For buyers who have been watching this number and lacking the confidence to take on a mortgage, you can be confident with the new rules previously mentioned and the data indicating more people are able to afford home ownership. Sellers, with fewer foreclosures on the market, you will most likely see an increase in purchase price.

4.      93% of millennial renters are now planning to buy a home. For sellers, this is good news as once again, this group of buyers will enter the market searching for a home. Competition will increase for each home listed on the market.

5.      Investors are beginning to buy up real estate again before the prices really jump. For buyers, this means you will be facing competition for the homes you find on the market. Be ready to make an offer. Get pre-qualified from a credible lender before starting your home search. For sellers, this means more potential buyers coming through your door to view your home. And the more showings you have the quicker you’ll likely have a great offer to work with.

If you are a buyer or seller looking to take advantage of the current market conditions, please visit our website and contact us today!