The National Association of Realtors (NAR) isn’t known for deep thinking. After all, this is the group that brought you David Lereah, America’s very own Baghdad Bob on the topic of forecasting home values. But let’s take a closer look at the idea that NOW is always the time to buy. After all, if now is not the time to buy, then now is the time to sell.
Turns out NAR has that one covered. They’ve got a list of the best places to buy and sell, NOW. And guess where is the time to sell NOW.
That’s right. Where it’s Special.
Real Estate News | Feb 14, 2013 | By: Lexie Puckett | Realtor.com
The new year started on a positive note in January, with inventories at record lows and list prices holding steady on a year-over-year basis. Whether this shows a continuation of the nascent housing recovery into 2013 will depend on a variety of factors, including the strength of the overall economy, the cost and availability of mortgage credit, consumer expectations regarding future housing prices, and the success of continuing efforts to stem the flow of new foreclosures.
If inventories remain low — and if list prices begin to rise during the next few months, as they did last year — conditions are ripe for additional house price appreciation in 2013. However, such gains are likely to be concentrated in markets already well into their recovery process, such as California, Phoenix, Seattle, Washington, D.C., and many sand states. Markets in the older industrialized parts of the Midwest and the East will likely continue to struggle without a significant turnaround in their local economies. However, if inventories in these areas remain high, it could effectively set the stage for further declines in housing values in these local markets.
2013 Best Places to Buy and Sell
With two months remaining before the home-buying season opens, sellers have a huge advantage. In tight markets, such as the top five “Best Places to Sell,” sellers benefit from better prices than they’ve seen in years. In our five “Best Places to Buy,” buyers will find plentiful inventory and prices that haven’t experienced the increases others have seen during the past year.
So wait, are they saying that there actually exist places where NOW is not the time to buy? Well… no, because they would never want to
prevent suckers from giving them money interfere with the free market. Also commissions.
Here are NAR’s Top 5 Best Markets to Sell a House NOW. Except they didn’t say NOW, but you KNOW it’s THERE.
1. Sacramento. No, really. Inventory dropped even more than here where it really is Special, leading to price increases of (get ready to scream) 40%. You forgot to invest in Sacramento last year, didn’t you?
2. San Jose. Prices are up 25% here and inventory isn’t exactly generous. But unlike Sacramento, San Jose wasn’t rebounding from a complete price collapse.
3. San Francisco. They’re just copying us, and not as well.
4. Phoenix. See Sacramento. Inventory is down 16%, but so what? They simply make more land. What they can’t manage to make more of here is water.
5. Washington, DC. “With a median price of $429,900, D.C. is one of the nation’s priciest markets…” Right, NAR. You want to see what you can get here, where it’s actually Special, for $430,000? This.
HOA Dues: $202/mo.
1,157 Sq. Ft.
$372 / Sq. Ft.
Lot Size: 435 Sq. Ft.
On Redfin: 1 day
HOA Dues: $202/month
County: Santa Clara
Property Type: Condominium Stories: 1-3 (Low Rise)
Upcoming Open Houses
Saturday, Feb 23: 1:30-4:00 pm
Sunday, Feb 24: 1:30-4:00 pm
Dwnstrs condo has bright & open flr plan. Newer carpet, hrdwd flrs in entry & ktchn. Interior has been freshly painted. Spacious patio off of lving rm. Gas stove, dual sinks & recessed lights in Kitchen. Mster bdrm has it’s own patio, walk-in closet, recently updated bthrm, 2 sink vanity. Attchd 1 car garage w/ laundry. Community has large pool, spa, sports court, bbq/picnic area. Great location.
And by “Great location” they don’t really mean “great location.” Yesterday’s house was “great location.” This place is “You’re less likely to get shot than on Story Road.”
Now, lest you think all those California metros filling in the first 3 on that top 5 list are some big honking coincidence, here’s some data ripped straight out of NAR’s January Trends report. The blog entry linked above is distilled from this longer report.
It goes on to confirm what we already knew: It’s Special Here. Then again, it’s even More Special in Sacramento. Want to know where else it’s surprisingly Special?
Anyone who doesn’t see Bubble written all over these tables simply is not paying attention.