HOUSING INVENTORY TO BOTTOM OUT IN 2014, TIPS FOR HOME SHOPPERS, VACATION HOME SALES REVIEW

FRIDAY FACTS May 3, 2013

  • An article in Inman News predicts that housing inventory will bottom in 2014 and thereafter price rise will slow.  Existing home inventory, which is 90% of on market property, has dropped 20% year over year for the last 15 months and is now at levels not seen since 2000.
  • “Housing inventory in Barnstable County was down 14.5% compared to March of the previous year.” – Lynette Helmes, Real Estate Associates CEO

  1. – Lowball offers are a waste of time.  Homes are selling much closer to their asking price.

  2. – To win a bidding war, come in with a higher price, fewer contingencies and be flexible with dates.

  3. – Shop around for financing.  Get a good faith estimate from one lender then ask other lenders to beat it.

  • The KCM Blog offered the following statistics for vacation home sales in 2012:
    • The number of sales rose 10.1% from 2011 and accounted for 11% of all transactions in 2012.
    • 35% of vacation homes purchased were distressed sales.
    • The typical vacation homebuyer was 47 years old and the median household income was $92,100.
    • Lifestyle factors remain the primary motivation for vacation homebuyers with 80% planning to use the property for vacations or a family retreat and 27% planning to use it as a primary residence in the future.
    • 34% purchase a vacation property within 100 miles of their primary residence, 46% purchase a vacation property more than 500 miles from their primary residence. The median distance is 435 miles.
    • “Barnstable County is largely a second home market. The majority of buyers come from within Massachusetts, followed by the other New England states and New York.” – Lynette Helmes, Real Estate Associates CEO

    • 46% paid cash.
    • The median down payment was 27%.
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