Home prices, historically, have averaged 1-2 percent increase from year to year (since 1950). But since 2000, we have averaged nearly 9% increase in home prices year to year*. That extremely large increase coupled with the fact that average home sales prices outgrew average household income in 2003 meant only one thing, the housing bubble had to burst! Now this post is not meant to scare you or even make you think you can never sell your home. It is simply designed to educate you on why we are where we are and explain why I am excited about what my office can offer you and your family and friends!
Now lets discuss the hope that exists out there!
Experts say that we still need to drop 24% in home prices to reach traditional levels. Whether or not this is true or even accurate is not the point, this is the perception, and we must deal with this now! This perception is part of the reason why the market is declining the way it is. With home prices still declining why would a buyer want to buy a home when the home will be worth less as soon as they close on it. So about the only solution us buyers have, is to make extremely low offers, which as we all know frustrates sellers. That is until today!
Today there is now another solution, A Home Price Protection by Equity Lock. This provides Homeowners a way of protecting themselves against market declines (such as we have today.) It works this way, if you purchase a home for $200,000 and the market declines 5% when you sell your home, Equity lock will pay you $10,000 at closing**. This can be offered to almost all markets in the area.
Bottom line, this is an amazing solution for both buyers and sellers. Buyers do not have to predict the exact bottom of the housing market(which is impossible) and sellers don’t have worry about receiving nothing but low ball offers(hopefully). In this market everyone should feel like they are getting the best deal available to them and I think this is definitely a step towards accomplishing that exact thing. If you would like more information on this, please go to the website of Equity Lock or contact your trusted Keller Williams Consultant!
Posted by jbletheby 