Inventory Levels on the Rise as Sellers Gain Confidence

Daily Real Estate News | Wed, June 12, 2013

Forty percent of Americans say now is a good time to sell a home — up from 30 percent last month and 16 percent just one year ago, according to a new survey by Fannie Mae. Rising home prices are helping to boost sellers’ confidence. 

"Sentiment toward selling a home appears to be catching up with the strengthening housing market," says Doug Duncan, chief economist at Fannie Mae. “This jump may foreshadow a gradual return to more normal levels of housing supply from their lows of recent months. In turn, increased housing supply could serve to temper increasing consumer home price expectations.”

With confidence increasing, more sellers are listing their homes and inventory levels are rising in many markets. Inventory levels are up nationally 4 percent in April over the prior month, but in some markets inventories have soared even higher. For example, California municipalities Stockton and Sacramento have seen inventories rise more than 75 percent in April from the prior month, according to realtor.com® data. 

As the number of homes for sale increases, "homes are starting to sit a little bit longer," says Joanie Cubias of Lyon Real Estate in Sacramento.

Still, in markets where a large number of home owners remain underwater on their mortgage, inventory levels remain low. For example, in Phoenix, inventory levels as of June are at the lowest point than at any time in the previous 13 years. While Phoenix has had a 19 percent yearly gain in home prices, prices still remain far from their peak and many owners still owe more on their mortgage than their home is worth.  

The Fannie Mae survey found that 50 percent of Americans say they believe it would be difficult to get a mortgage, while fewer Americans this month — 46 percent — say they think it would be easy. The survey also found that more Americans — 46 percent — believe mortgage rates will increase soon.

"We will closely watch the potential impact of rising mortgage rates on consumer housing sentiment in the coming months," Duncan says.

Source: “More Americans say time is right to sell homes,” USA Today (June 10, 2013) and “Fannie Mae: Homeowner optimism soars to new highs,” HousingWire (June 10, 2013)

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About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Ady’s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! • Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. • Buyers will have the opportunity to view more properties exclusively. • And most importantly when you hire him you get a whole team working for you not just “only one person”. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on June 12, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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