But potential buyers are waiting for the right time 
I read an article on Real Estate Economy Watch recently that’s very relevant considering the slowing decline in home values and the recent extension and EXPANSION to existing homeowners, of the homebuyer tax credit.
We all know there’s pent-up demand among prospective home buyers who are holding off making a home purchase until they perceive conditions have optimized, but there’s also a pending supply of real estate and it’s large enough to have a serious impact on the housing markets.
A recent national survey looked at this issue and produced what may be the first data that measures the size of the pending supply. It found that 10.7 percent of 75 million homeowners have chosen not to sell at current market prices. That’s a huge number, 8 million homes, or about a two year-supply.
If and when home prices eventually rise by 5 percent, the survey found that 31.3 percent or 2.5 million owners will put their homes on the market. Should prices rise 10 percent, an additional 9.6 percent would sell, adding 760,000 more homes to the inventory. At 15 percent, 20.7 percent more would sell, representing 1.6 million homes. That’s a total of about 5 million homes that would to on the market at increases of 5 percent or less. It would take a rise in prices of 20 percent or more to get most of the remaining sellers, 28.4 percent or 2.27 million homes, to sell. Ten percent of owners said that they either wouldn’t sell at any price or didn’t respond to the question.
Perception is one thing, reality another. The reality is, declines in property values for our tri-county area are slowing. There are even a few areas showing increases (Laurel Springs, Mt. Ephraim, and Moorestown are up through the end of October and Collingswood reported a very minimal decline). Zillow has sponsored some interesting research and found that most homeowners - 74 percent - believe that their home will not decline in value in the coming six months. One in four homeowners (27 percent) think their home’s value will increase in the next six months, while nearly half (47 percent) believe their home’s value will remain the same. Homeowners were optimistic when it came to predicting home values in their local markets. About two-thirds of homeowners believe home values in their local markets will increase (26 percent) or stay the same (37 percent) over the next six months. Thirty-seven percent believe home values will decrease. The good news is that these pending supply homeonwers are prospective buyers themselves. Their entry into the market will create demand for many of the houses other pent up supply owners are selling. Their income exceeds $50,000 and most are over 35. These are "move-up" buyers, most of whom will use proceeds from their sales to buy new homes.
Between now and April 30, 2010, buyers and sellers who want to take advantage of the homebuyer tax credit must have their homes under contract. Settlement must take place by June 30, 2010. If your plan was to list your home this spring, don’t wait. While the holidays are not the easiest time to market your home, it would be foolish to wait until even January with the unusual opportunity this time-limited tax credit offers. If you’re a first-time homebuyer, keep in mind it can take months to find that dream home you’re looking for - there's no better time to start than today!
Kathi Boggs-Shaner
Sales Associate, REALTOR®
Prudential Fox & Roach Realtors
41 S. Haddon Avenue
Haddonfield 08033
856-428-2600 - Office
856-428-6793 - FAX
856-979-3157 - Cell Phone
Website: http://kathiboggsshaner.gmragent.com/
