Existing Home Inventory Down in Richmond Virginia: How this effects You

Stephanie Sellers - Thursday, February 28, 2013

There are many factors contributing to the re sale home inventory available.  Nationally low figures produced a result of a 13 year low in the resale housing inventory.  Builders are offering incentives to buyers encouraging home purchases.

Families find themselves looking for a re sale home but either investors beat them to the offer or the homes are unlivable.  Although buyers may want to buy an existing home they are finding this more and more difficult to find.

Many larger builders have in house mortgage companies and we are starting to see a national trend of buyers who would not qualify under traditional lending practices becoming qualified and usually for more then they felt they could afford.

New home sales jumped 28.9% in January and re sale homes rose 9.1% although a new home is typically 37% more then an existing home.  It is becoming easier and easier to buy a new home versus a resale home.  Due to lack of inventory and the buyers assistance program offered by many builders.  Many homeowners are reluctant to sell their homes right now fearing that the value hasnt increased enough to earn what they expect from a sale.

Builders are stepping up construction.  Many builders in the U.S have reported double digit growth in orders for new homes.  The assistance of government backed loans has induced an easier buying process for new construction.  Census show 50% of new homes sold in the first quarter of 2012 were government backed with FHA at 31% which is up from 10% in the same quarter 5 years ago.  

In conclusion; Now is a great time to think about selling, There isnt much competition and if you stage your home properly your main competition will be new construction which will most likely be priced higher then an existing home (which was less to build previously)

With the gains in new construction you can expect higher prices at the model home coming in the near future.  Profits have been marginal for contractors and builders in previous years and with the new construction craze and the lack of resale inventory you are sure to see a rise in prices.

So you might ask yourself "Maybe, now is the right time to sell my home?"

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Source The Wall Street Journal February 26, 2013