This article comes from http://www.cnbc.com by Diana Olick and talks about the higher prices and the strong demand for homes.
I did find a paragraph in this story that had an interesting sentence.
“That sale price has shifted higher not just because of inherent home
value but because of the mix of homes selling. Currently, more expensive
homes are selling because there is a severe shortage of low-priced
starter homes for sale. Higher volume on the pricier end shifts the
median higher. If rental landlords suddenly dumped a few million
low-priced homes on the market, and they sold fast, that median would
shift lower immediately.”
If rental landlords dumped their medium priced properties the medium price would change, so what? The prices on medium priced homes are at there peak and would sell fast in the better areas. As a landlord it might be a great time to sell a few properties and cash in on this awesome real estate market. If your home is located in an area that is selling in 60 days or less you might want to consider it.
“”The national housing market remains red hot and shows no signs of
slowing, even as some local markets like the Bay Area have noticeably
cooled,” Gudell said. “But even in areas where the housing market has
slowed, home values are at or very near peak levels, selection is
limited, demand is high and competition is fierce.””
That is another thing that needs to be looked at when you are selling, how many homes are for sale in the area? For example in Strongsville Ohio when a property in the 44136 zip code goes up for sale in the low $200’s it sells very quickly. We looked at one last weekend that was under contract in 3 days. That is a hot market. There are very few nice ones for sale.
“Zillow has come under plenty of fire for its so-called “Zestimates,”
with some homeowners claiming inaccurate readings are hurting their home
values. So, is it absolutely precise? Of course not.”
They are so wrong and buyers look at Zillow and think that they are correct on the values. There is a lot of variables that one has to take into consideration when coming up with a home value. For example does the home have updated? New kitchen, more bathrooms, Sun room, basement, is it a as is property, or remodeled property? Zillow takes known of this into consideration and often gives the wrong estimate on a properties value.
You have to be licensed and study what each home is worth and why it is worth that price. I always email the appraiser my comps and if we did updating I send the before and after pictures I took of the project. Also send the list of updates that were done. Thank God I have never missed an appraisal. That is what it takes to get a correct value on a home.