The peak home-selling season may have ended, but there some buyers are just getting started: those looking to sell a home and trade up. Is now a good time for these buyers to start their search? And what does this uptick in move-up buyers mean for the market?
In this installment of Buying Advice, we’ll also check in with the latest housing numbers and give move-up buyers a refresher course in listing terminology.
Movin’ on up
Homeowners in many areas who bought just before the housing bust had little opportunity to move up to a larger home. Underwater on their mortgages, they were stuck for years waiting for their homes to appreciate.
That’s because prices in the first seven months of this year increased faster than in any year since 2004, when the real estate bubble was inflating, according to the latest Case-Shiller Home Price Indices.
Now many once-stuck owners can jump back into the housing market and move up to a larger or better-located house.
While exact data on move-up buyers is hard to come by, the share of first-time buyers has been declining, dropping to 28% of purchases in August from 31% in August 2012, while at the same time sales have surged by double digits, according to the National Association of Realtors. Extrapolate from that, and it appears second-time-around buyers are becoming a bigger part of housing sales as home prices and interest rates have started to rise.
Blessings from all of us at
Coleman Real Estate Group
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