Home Buyers Heating Up, Sellers Waking Up

The percentage of home buyers writing offers in January increased by 12 percentage points according to Redfine and 23 percent of Americans think it is a good time to sell compared to 11 percent the same time last year, according to Fannie Mae’s January 2013 National Housing Survey results. The increase in homebuyer demand seen in January paired with a nation-wide inventory shortage has created an extreme seller’s market, bidding wars involving multiple offers have become increasingly common. There are two factors affecting upward trend in the share of home owners who say it’s a good time to sell. First, home prices are improving. Second, the number of homeowners who are underwater is declining, this eliminates a barrier for those owners who need to sell their home in order to buy.