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Growth Trend Continue in Existing-Home Sales

Posted Monday, December 27, 2010

In November the number of existing home sale rose 5.6% over the October numbers, from 4.43 million to 4.68 million totaling an additional 250,000 sales nationwide. These numbers include Single Family, Townhomes, Condominiums, and Co-Ops. While single family home sales rose a total of 6.7% Condominiums and Co-ops actually declined 1.9%. Although the sales increase is a positive sign for homeowners in need of selling the numbers are still approximately 30% below the Nov 2009 peak. This was the original deadline for the first time buyer incentive programs.

32% of sales were to 1st time buyers which also is below the Nov 2009 peak of 51%. Investors have accounted for 19% of the total sales and a total of 31% were all-cash sales. The high volume of all-cash sales continue to reflect the difficulties many people who are trying to acquire financing are having.

The reflection of these numbers also has me asking these questions. What if I need to sell my house fast? To whom do I turn to sell my house? Is the traditional method of listing with the real estate agent going to sell my house fast? Further statistics show that although there was a 4% drop in the housing inventory there is still a 9.5 month supply. What if I don't have 9.5 months to sell my house?

Should I call the number on the we buy houses sign on the corner? This to me seems a risky proposition. Who are these people? Do they want to rip me off? Are they running some kind of scam? It all seems a bit scary. Actually the we buy houses people are usually investors and most are very savvy buyers of real estate. The purpose of these signs and why should not be afraid to call is simply to make direct contact with the homeowner before they go out and list their home with the real estate agent. This is not necessarily due to any prejudice for real estate agents but rather to avoid the extra cost involved when the real estate agent service fees are required to be included into the completion of a property sale.

The investor behind the we buy houses sign wants to buy your home and then through one of many different investment strategies turn around and make a profit from it. So yes they are looking for the great deal but no, they are not trying to rip you off. Fact is they are quite likely to be your best choice if you do indeed need to sell your home fast.