2014 Government Regulations & Business Summit
Join PBN and our sponsors for our Government Regulations & Business Summit on Th ...
Could we be looking at an early spring this year – not in meteorological terms but real estate? Could the chilly December to February months, which traditionally see fewer buyers out shopping for houses compared with the warmer months that follow, be more active than usual? And if so, what does this mean to you as a potential home seller or buyer?
There is growing evidence, anecdotal and statistical, that there are more shoppers on the prowl in many parts of the country than is customary for this time of year, more people requesting “preapproval” letters from mortgage companies, more people visiting websites offering homes for sale, and more people telling pollsters that they expect home prices to continue rising and that the worst of the housing downturn is long past. There is even data showing that during holiday-distracted December, there was a jump in visits to homes listed for sale.
Coldwell Banker, one of the largest brokerages in the country, says traffic to its listings website was up 38 percent during the past month, compared with year-earlier levels. ZipRealty, an online brokerage based in Emeryville, Calif., reports that its website has seen an unusual 33 percent increase in home shoppers in the first half of January compared with December.
Redfin, a brokerage with headquarters in Seattle, found that even during the week of Dec. 30, shoppers requesting home tours by agents jumped 26 percent over the four-week average, and 9 percent compared with the same week the year before.
Economists at the National Association of Realtors report that foot traffic at houses listed for sale in well over half of all markets around the country was higher this past December than the year before. Given the strong December reading, said Paul C. Bishop, vice president for research at the association, sales in the coming weeks should be “robust.”
Even in markets that typically hibernate until the snow melts, there are indications of an unusually early start to the 2013 season. Joe Petrowsky, president of Right Trac Financing Group, a mortgage company near Hartford, Conn., said he has received a much higher volume of requests for “preapproval” letters – which tell sellers that a purchaser is qualified for a mortgage loan – compared with what’s typical at this time of year.
“I’m seeing twice as many buyers this January as last January,” Petrowsky said in an interview. “People have finally figured out that prices are moving up, interest rates are really low, and they don’t want to miss out on the opportunity.”