Friday, October 10, 2014

Resales suffer a little hit from new construction boom

The resale market for homes is still appreciating but the rapid rise of 2013 has slowed to a modest rise thus far in 2014. I believe that the sudden expansion of new construction all over the area has had a strong impact on resale listings.

That said the combined two year growth rate is at 18% and that spells good news for formally upside down homeowners looking to move.

The modest rate of growth will help homeowners but may start stinging that entry level buyer. Buyers earning less than $30,000 a year are starting to find it difficult to get into a single family detached house.

I have been blowing the warning siren for a couple of years now and it seems the the reality has caught up with the alarm.

First time home buyers sitting on the fence need to call their favorite Realtor and jump in now.

The news media may indicate a "slow down" but it is a slow down in the rate of growth, not a decline in values. Prices continue the march upward and this mean purchasing power is shrinking.

Happy hunting :)

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