Weekly Special | March 5, 2017

Why Home Values Will Move 10% Higher This Year

Home values are on the rise, and if you have not been paying attention, you might think that our whole market has gone nuts.

The sweet spot in the market is those homes that are priced below where builders can produce a new single family detached home.

Sure, there are a few pockets of new homes priced UNDER $300K, but for the most part, if you want a decent sized home on more than a postage stamp lot, be prepared to spend upwards of $400,000 for a new home.

Thus, the existing homes under $400K are moving up in value nicely. Homes above $500K still have too much competition and are not appreciating.

The graph above shows why overall values are moving much higher this year.

When we measure fresh new listings on the market (ignoring those that have been listed for sale prior), we have seen 9 months of continuing declines in the number of fresh new listings.

Supply is dropping! That means that even though current supply levels of homes under $400K are too low, they are going lower.

And builders cannot produce replacements. Expect to see some nice single-family (attached) developments that will allow for more housing units in the price ranges that are in need.

If you have a home that you might consider selling, now is a very good time to talk to a market expert for your area and get a current valuation.

This issue went with a longer report on our blog: read the full blog post. The original one-page Weekly Special PDF is still available.