In the past six months 207 homes have sold in Arrowhead Woods from a current active list of 239 home for sale. The excitement is in the details of rising sales feeding rising prices. Annual sales for 2013 are 13% above 2012. Prices ended the year near 15% over 2013. We have turned the corner to an upswing in Arrowhead Woods!
Studying listings and sold homes, six months ago we had very modest activity in the $500,000 to $600,000 range. We now have parity in listings and sales in this price bracket.
The breakthrough above $500,000 is attributable to buyer and lender confidence. Conforming loans, the best rates (now 4.7%), stop at $417,000, thus sales over $519,000 require more than 20% down to get a conforming loan. Or a borrower can apply for a jumbo loan with a higher rate but more stringent financial requirements. A second buying stimulant is fear of rising mortgage rates, spurring some to act now.
Sales under $600,000 are 89% of total homes sold. Listings under $600,000 are 62% of total homes listed. 239 total homes for sale is the lowest count in memory. There is no formula, but it seems reasonable to call for more listings to sustain a meaningful increase in sales and prices.
Homeowners sitting on the fence need to review their price expectations.
Is now is a good time to sell? I have cautioned before, but I say yes, now.