Home Values are on the rise

Good News on the Real Estate front! Home Values are on the rise! In Placer County the medium home price rose in March 2013 *20.6% over March of 2012.

How could this be?

There are actually a few contributors.

Lower interest rates. We’ve had low interest rates which makes it appealing for those afraid of a monthly payment. Although interest rates crept up in March to *3.57 up from *3.53% in February.

Low Number of Homes for Sale (Low Inventory). Currently the amount of homes for sale in the Placer County area is low. The highest demand being below $300,000.00 or smaller homes below 2500 sf. Foreclosures and Short Sales are slowing down with the brunt of the wave passed us now. Investors have come through and purchased many homes with cash competing against actual home buyers that are trying to purchase their own home with financing. Cash wins over financing leaving home buyers scrambling and over bidding for homes to compete with the investors. This all goes to the supply and demand rule of economics. Low Supply and High Demand drives up your price.

So, this market is a good time for Buyers but definitely is a Seller’s market. If you have been thinking about selling your home, now is a very good time to do at least have a valuation done and see where your home may be valued in today’s market.

Things are movin’ on up!

*Numbers provided by California Association of Realtors.

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