NAR Reports Reveal Two Reasons to Sell This Winter

NAR Reports Reveal Two Reasons to Sell This Winter

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now is a great time to sell your house. Let’s look at the data covered by the latest Pending Home Sales Report and Existing Home Sales Report.

THE PENDING HOME SALES REPORT

The report announced that pending home sales (homes going into contract) are up 3.9% over last year, and have increased year-over-year now for 14 consecutive months. Lawrence Yun, NAR’s Chief Economist, expects demand to remain stable through the final two months of the year, and “forecasts existing-home sales to finish 2015 at a pace of 5.30 million – the highest since 2006.” Takeaway: Demand for housing will continue throughout the end of 2015 and into 2016. The seasonal slowdown often felt in the winter months hasn’t started and shows little signs of being near.

THE EXISTING HOME SALES REPORT

The most important data point revealed in the report was not sales but instead the inventory of homes on the market (supply). The report explained:

  • Total housing inventory decreased 2.3% to 2.14 million homes available for sale
  • That represents a 4.8-month supply at the current sales pace
  • Unsold inventory is 4.5% lower than a year ago

There were two more interesting comments made by Yun in the report:

1. “New and existing-home supply has struggled to improve, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets.”

In real estate, there is a guideline that often applies. When there is less than 6 months inventory available, we are in a sellers’ market and we will see appreciation. Between 6-7 months is a neutral market where prices will increase at the rate of inflation. More than 7 months inventory means we are in a buyers’ market and should expect depreciation in home values. As Yun notes, we are currently in a sellers’ market (prices still increasing).

2. “Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home.” As rents and prices increase, potential buyers will not able to save as much for a down payment and many may become priced out of the market.

Takeaway: Inventory of homes for sale is still well below the 6 months needed for a normal market. Prices will continue to rise if a ‘sizeable’ supply does not enter the market. Take advantage of the ready willing and able buyers that are still out looking for your house.



Kim Suwa

HEAD OF PROPERTY MANAGEMENT

Kim has served in many positions with our company and works diligently to answer any questions that you may have. Her proficient and vast set of skills is unique in that she is highly qualified in all areas of Leasing and Property Management. Kim gracefully manages all the accounting staff and functions, including coordinating rental tax, owner disbursements, move out accounting, trust account reconciliation, human resources and oversees all lease renewals for Amy Home Sales and Clear Property Management to ensure that our occupancy rate is maintained at the highest level.

Kim has an incomparable ability to solve problems and is meticulous about maintaining perfection. Should you ever have a question about anything, please let her know.

Anne Trear

BUYER'S AGENT

CalDRE: #02096043

626.428.0656
anne.trear@theagencyre.com

Anne Trear brings a passion for real estate and commitment to her clients to The Agency Pasadena, teaming up with Amy Weber as a buyer’s agent. She focuses on creatively finding solutions for her clients, embracing the opportunity to meet and develop relationships with a wide range of people, all while helping them make one of the most important decisions of their lives; she feels fortunate to get to be a part of such a monumental moment. She thrives in the exciting, fast-paced environment of real estate, where everyday is engaging and different.

Anne’s experience as a bartender and trail guide at an equestrian center have given her the opportunity to work with people from all walks of life, each bringing their own passions, emotions, and personalities to the table. She leverages this insight in her real estate career, always seeking to fully understand her clients–their desires, dreams, and needs—so she can best serve them. Enthusiastic, and motivated, Anne values honesty and integrity; her work ethic and hustle speak to her dedication to making sure her clients are completely taken care of every step of the way.

When she’s not serving her clients, she spends her time volunteering at The Union Rescue Mission and exploring her community.

Amy Weber

DIRECTOR OF RESIDENTIAL SALES

CalDRE: #01946366

818.568.4243
amy.weber@theagencyre.com

Amy Weber brings The Agency a wealth of real estate experience and a keen competitive drive. After finding success investing in properties herself, Amy gained extensive knowledge of the industry before becoming an agent. She is an accredited home stager, broker associate and E-Pro Real Estate Agent as well as a Certified Real Estate specialist (CRS), a Buyer’s Real Estate Specialist (BRS), a Senior Real Estate pro (SRES) and Certified Probate Real Estate Specialist (CPRES).

A former actress, talent agency owner and veteran of the WWE, Amy is no stranger to the rigors of competition. She is a tireless champion for her clients and understands the importance of standing out in a crowded field. To help attract potential buyers to her properties, Amy calls upon her highly skilled network of photographers and drone video operators, who work to put each home in its best light. Amy has received numerous acknowledgements from past clients praising her polished performance and talent for closing deals. She currently specializes in the Pasadena, Altadena, La Canada, La Crescenta and Montrose neighborhoods.

In her free time, Amy loves cooking, reading, volunteering with the ASPCA and spending time with her twins, Madison and Levi.

DESIGNATIONS AND CERTIFICATES:
  • Broker Associate
  • Certified Probate Real Estate Professional
  • Senior Real Estate Specialist (SRES)
  • Accredited Buyer’s Representative (ABR®)
  • Video Marketing
  • Client Negotiations