January home price index numbers came out recently and prices were up 6.2% nationally, from a year ago. That’s in line with December’s 6.3% gain that had been the biggest one year price gains we’ve seen in the last three years.
We’ve been repeating it for a while now, but the narrative behind these higher prices is the continued shortage of homes for sale. As the spring home-buying season begins, house shoppers are facing higher prices and fierce competition for a limited inventory of available listings. But a strong job market has given American consumers, including an ever-growing number of millennials entering the market, the confidence to shop for homes anyway.
It’s been great news for home sellers, who’ve been cashing in big time. A new report shows that in the last quarter of 2017, sellers raked in profits on their homes we haven’t seen in more than a decade! Home sellers made an average of $54,000 over what they originally paid for their homes in the quarter, which is nearly 14.6% more than the same three month period back in 2016.
Even with prices rising as they have been, this market is not showing signs of slowing soon. Builders are struggling to keep pace with demand, and although mortgage rates are expected to rise, they’re still hovering low for now, so this is likely to continue to be the story for a while still. What does it mean for you? Well, if you’ve been thinking of listing your property, now is a great time to do it. And if you’re out there house-hunting, it’s important to have an experienced Realtor working to help you find the right deal for you. When you’re ready to sell your home, or begin looking for your next one, call us! We’re here to help you with all of your Real Estate needs.