Are You a Hog?
Having recently sold my home (see recent blog on the subject) I was happy that I pulled the trigger and sold at a time when there was a lack of similar inventory out there because, according to a survey of home sellers from Redfin, it looks like seller confidence is on its way up.
Data for the survey was collected in October and captured the sentiment from homeowners “with the intent to sell.” Five hundred sixty-seven homeowners from 20 markets across the US responded.
Below is the results snapshot:
*83% believe that they would get a higher price by waiting one to two years, up from 80% in the third quarter;
*43% of respondents are considering renting out their home rather than selling it, down from 46% last quarter;
*31% intend to price their home higher than nearby comparable sales, which is unchanged from last quarter;
* 37% would choose an all-cash offer over higher offers with conventional or FHA financing, up from 35% last quarter;
* 40% cited the economy as a major concern with selling, down from 49% in the third quarter;
*15% believe it is a good time to sell, up from 13% last quarter; and
*58% believe it is a good time to buy, down from 61% last quarter.
According to Redfin, compared to past surveys, the numbers were consistent with a trend of sellers being more confident about their chances in the market, a little less interested in alternatives to selling (such as renting out the home), and a little less concerned about the economy.
If these trends continue over the next few quarters 2013, Redfin says it could possibly result in an easing of “the big inventory squeeze.”
In my case, I sold out of necessity, and not to make a profit. But I feel I just got lucky in two respects: I bought around the time when the market was at or near the bottom; and sold when people who owned homes were betting that prices would be higher in the near future. For me, the convenience in that it sold so quickly more than makes up for any speculative gains I could have made a year from now if I rented out the house, or just sat on it.
Jim Cramer has always said “Bulls make money, bears make money, and hogs get slaughtered.” At what point would you decide that it is the right time to put the house on the market if you're looking to make some money on the deal? At what point do you become a Hog? What happens if you miss that window of opportunity and prices dip again?