So you started thinking about selling your Columbia SC real estate, and you figure: Let's wait until the spring or early summer before listing. The yard will look its best and potential buyers will be out in force. And everybody knows that winter is dead time for Columbia SC real estate. Right?
Well, that's the widely held belief. But national statistical studies suggest it's not necessarily the case.
Advantages of Buying Columbia SC Real Estate During Winter
Winter — officially Dec. 21 through March 20 for the current season — can be a surprisingly advantageous time to list, shop, negotiate and buy Columbia SC real estate. Consider some findings by researchers at Redfin, the online realty brokerage.
Redfin studied home listing, sales price and time-on-market data from 2010 through this past October from around the country, updating a two-year analysis it completed last year. It concluded that if you want to sell for more than your asking price, listing in December, January, February and March gives you a better chance, on average, than if you list any time after June through November.
During the past three years, listing during these four months has produced higher percentages of above-asking price sales than any months other than April and May. In 2012, at the inception of the housing rebound, December listings produced the highest percentage of above-asking sales for the entire year: 17 percent.
Researchers are quick to note that the advantages of listing their Columbia SC real estate in winter compared with other seasons are not huge. But the fact that winter produces at least competitive or better results by some measures should encourage some potential sellers to get into the game sooner rather than later.
For potential buyers of Columbia SC real estate, the winter season may find some sellers more flexible about negotiations over prices and terms than they would during the middle of the spring.
In its two-year study completed last December, researchers found that sellers of Columbia SC real estate were better off listing their homes in the winter than during any other season.
Bottom line: Columbia SC real estate does not hibernate from December through March. More than 5 million homes typically are resold annually in the United States, and many of them are listed and sold during the winter months. In strong local housing markets such as Columbia SC , the likelihood of selling your home within 180 days is higher when you list during the winter months compared with any other season, according to Redfin's 2013 study.
With the forecast of higher mortgage rates on the horizon, there may never be a more affordable time to buy Columbia SC real estate than right now. Talk to us about rates, and where prices are for Columbia SC real estate. We're here to help you in any way that we can.
We have more articles about buying and selling Columbia SC real estate in the sections on Columbia SC Home Buying Tips and Columbia SC Home Selling Tips under our Columbia SC Real Estate Categories to your right.
Don't forget, we also post tips and news about Columbia SC real estate and other general real estate news daily at Twitter and Facebook. Be sure to follow us there.
The confidence level towards Columbia SC real estate is on the rise according to the latest Zillow Housing Confidence Index. Homebuyers generally feel more positive about the Columbia SC real estate market now compared to the beginning of the year. The index was 63.7 in January, but increased to 64.2 during the summer.
The Housing Confidence Index is measured on a scale of 0 to 100, and readings above 50 show a positive market sentiment. Sub-sectors within the index look at buying and selling conditions, predicted changes in home values, market trends, home affordability, home buying plans and attitudes towards home ownership. Residents in the areas surveyed reported increased overall confidence in the Columbia SC real estate market.
Younger Renters See Themselves Buying Columbia SC Real Estate
Younger renters were most optimistic about their future home buying prospects, and some 82% of those aged between 18 and 34 were pretty confident they would be able to buy their own Columbia SC real estate someday. In comparison 64% of those aged 34 to 49 felt this way, and just 48% of those aged 50 to 64 thought they'd be able to buy their own Columbia SC home.
The younger generation also have a much more optimistic view about the Columbia SC real estate market in general, and a 33% expected property values to rise more than 6% annually over the next 10 years compared to just 21% of middle-aged respondents, and 15% of those falling into the older age group.
Although strong aspirations are no substitute for financial capacity or credit worthiness on a mortgage loan application, feedback from millennial renters is significant because it confirms that they bear relatively few psychological scars from the housing bust, and because the attitudes of this generation will drive housing trends in the decades to come.
Experts point out we need this generation to feel confident about home ownership, and we should want them to buy regardless of the fact that they may initially struggle to purchase a home.
Follow news on the Columbia SC real estate market and the housing industry overall by periodically checking back in the Columbia SC Real Estate News section of our website under Columbia SC Real Estate Categories.
When looking to sell any Columbia SC real estate, one typically turns to a broker to get their property listed in the MLS (Multiple Listing Service.) But some homes are actually bought and sold without ever being officially listed in the MLS. This word-of-mouth technique is gaining popularity among sellers who want to avoid the perils of a down market, and perhaps save a little on the selling commission. But if you're considering selling your home, this might not be the best route.
The Columbia SC Real Estate Hidden Market
Once used mostly by the rich and famous, a "pocket listing" means that a home is not listed on a multiple listing service but is instead marketed directly by the property's real-estate agent or broker — it is in that agent's "pocket" – so to speak. But many not-so-rich and not-so-famous homeowners also go the pocket-listing route. The seller and agent have more control over who knows the home is for sale, who can look at it and, thus, who may eventually buy it.
These off-market listings for Columbia SC real estate have always been around. People may want privacy during a divorce or after a death, for instance, or an executive may not want his company to know he's thinking of moving. But this type of sale has become more prevalent these days, and some agents and brokers, us included, don't think that's good for buyers or sellers.
Columbia SC real estate for sale that isn't available to the general public, only to a privileged few, is just not a smart way to go about selling a home. If privacy is the issue, there are plenty of rules in place to protect sellers who don't want the entire neighborhood to know their home is on the market.
Another reason for a pocket listing is that a seller might be hesitant to list a home in a down market but would be willing to sell to the right buyer, for the right price or both.
When looking for Columbia SC real estate, you need an agent who has connections to all the other real estate agents and brokers who can find pocket listings. It's practically impossible for a buyer to track down such properties that may be for sale. Sellers should keep that in mind!
Many sellers who choose a pocket listing don't actually have their heart set on selling. They may not be motivated. In some cases, a seller who wants to try a pocket listing will be motivated later on and decide to move the property onto the MLS. Sellers of Columbia SC real estate who don't want their property in the MLS need to understand they may be jeopardizing their ability to maximize their investment or of finding a buyer.
For more tips on selling your Columbia SC real estate, see our section on Columbia SC Home Selling Tips to your right under Columbia SC Real Estate Categories.
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Columbia SC Mortgage Rates Continue to Slide
Columbia SC mortgage rates continue to fall. Nationwide, for the fifth week in a row, 30-year fixed mortgage rates dropped and now are at an average 4.12 percent, according to a national survey. That was down from the previous week's average of 4.14 percent.
Despite an announcement by the Federal Reserve that it would begin to taper its stimulus, which brought the expectation that mortgage rates would increase gradually, rates have remained near all-time lows. The Fed has announced four declines in its monthly bond purchases since December because the economy appears to be steadily healing. But the Fed has no plans to raise its benchmark short-term rate from record lows.
According to Bankrate, a number of factors have played into rates remaining low, including slow overall growth in the U.S. economy. Without strong growth in investments, mortgage rates tend to stay low because they are related to yields on long-term government debt.
Warmer weather has yet to boost home buying as it normally does. Rising prices and higher interest rates beginning in mid-2013 have made homes less affordable for would-be buyers. At the same time, a limited supply of homes is available to buy. New construction has focused increasingly on rental apartments, instead of single-family homes.
Fed Chair Janet Yellen has told Congress that the economy is improving but noted that the job market remains "far from satisfactory" and that inflation is still below the Fed's target rate. She said she expects the Fed's near-zero target for short-term rates to remain appropriate for a "considerable time" after the bond purchases end.
Stay plugged in here with our website and we'll keep you up to date on the latest Columbia SC mortgage rates, and news that affects those rates.
Pending Home Sales Rise in April
The National Association of Realtors said this past week that its seasonally adjusted pending home sales index rose 0.4 percent to 97.8 last month. The index remains 9.2 percent below its level a year ago.
More people signed contracts to purchase homes in April than the prior month. But the pace of buying is still weaker than last year, as higher prices and relatively tight supplies have limited sales.
Pending sales are a barometer of future purchases. A one to two month lag usually exists between a signed contract and a completed sale. The index indicates that home buying has barely increased in May.
Would-be buyers have gotten some help in recent weeks from falling mortgage rates that we just talked about in our first story. Average rates for 30-year, fixed mortgages declined for the fifth straight week to 4.12 percent.
Still, rates remain above their lows of 3.51 percent a year ago. The rising rates in the second half of 2013 and higher home prices appear to have reduced the pool of potential homebuyers.
The Realtors group said last week that sales rose 1.3 percent in April from March to a seasonally adjusted annual rate of 4.65 million. Purchases of homes over the past 12 months have dropped 6.8 percent.
5 Best Things to Buy in June
Shifting gears a bit away from "all things related to Columbia SC real estate", we thought we'd bring you a little buying advice in something besides Columbia SC real estate, and give you some tips on some other things you might find a good deal on in June.
Tools: Father's Day is June 15th, and retailers are discounting prices on tools and other home improvement equipment. Even if you're not buying tools for Dad, you may want to assess your own supply, since tools rarely go on sale. Check out coupons and newspaper ads for home improvement stores to compare prices.
Designer Clothes: If you're in the market for some hip summer clothes, June is an excellent month to hit the sales racks. All the big fashion houses are making way for their fall collection, so now is a great time to scoop up those latest trends you've been eyeing.
Gym Memberships and Equipment: Anyone working on their beach body, or those simply trying to maintain a healthy one, will benefit from slashed prices on gym memberships, fitness apparel and workout equipment in June. With new year's resolutions long forgotten and more people getting outdoors to take advantage of the nice weather, there's less of a demand for indoor gym equipment and gym memberships. Lack of demand equals a decrease in prices.
Grills and Grilling Supplies: If you delayed buying a new grill for the summer, June and July are the best months for deals on grills. Also shop for grilling supplies, including utensils and grill baskets.
Dishes: Due in large part to June being such a popular month for weddings, dishware companies offer discounts on their products to try to win spots on registries. That's good news for everyone in need of new place settings, soon-to-be-married or not. Expect discounts to start around 25 percent off and to go as high as half off, or more.
See you next month for another issue of our Columbia SC real estate newsletter!
If you're thinking about putting your home on the market in time for the Columbia SC real estate sales season, you better move now! Not next month, not next week. Do it right now!
Spring is coming, and that is certainly driving a lot of the interest in Columbia SC real estate currently listed for sale. But there are other factors at play.
Incentives for Columbia SC Real Estate Buyers
Mortgage rates have declined over the past month and are currently trending back toward 4% for traditionally structured, well qualified loans. This is a significant development for buyers, as interest rates are a huge driver of home affordability.
For example, a traditional 30-year, $250,000 mortgage at 4.5% would have a monthly payment of $1267. If rates declined to 4.25%, the payment would change to $1230.
For Columbia SC real estate borrowers on the edge of qualifying for a mortgage, that $37 per month savings could make the difference between getting a loan approval or not. Over the life of the loan, that 0.25% difference saves the borrower $13,320!
The Urgency for Columbia SC Real Estate Buyers
For buyers, the time to buy low is quickly ending, creating a sense of urgency to buy now before prices rise too high or interest rates return to more historically normal levels.
According to CoreLogic and reported by Realtor.org, home prices in 2013 saw the largest percentage increase across the board since 2005, north of 11% as of December.
The spring selling season will be in full swing sooner than you think. Rates are low, there is urgency to buy now, and buyers are already coming out of their winter slumber. If you're planning to sell your Columbia SC real estate in 2014, you need to jump on the bandwagon right now. Don't miss out on the perfect, well qualified buyer because you waited a week or two too long.
For more Columbia SC real estate home selling tips, visit the Columbia SC Home Selling Tips section of our website to your right under Columbia SC Real Estate Categories.