|Here is this month’s How’s the Market??? Snapshot. If you saw last month’s Snapshot you will notice that our local real estate trends show median prices are still creeping up, its just taking a little longer for homes to sell! If you would like more detailed information about how much your home is now worth after the Real Estate Crash, send me an email, text, or call me. I’ll be more than happy to provide you with a Free, no obligation report of what its worth and things you can do to improve the value of your home.
|If you know someone who is considering buying or selling a home, please give me a call. I will provide professional & courteous service along with knowledgeable guidance through the process.|
Consumer confidence is almost as high as it was pre-recession. Economists predict GDP growth will see a slight year-over-year increase. And private sector job growth has been steady for the past two years, averaging 240,000 jobs per month. All of these factors led the National Association of Home Builders’ chief economist David Crowe to declare 2016 “a good year for housing and the economy.”
Mortgage Rates to Rise from Cheap to Low
This year mortgage rates are expected to climb one-quarter to one-half of a percentage point to an average of 4.5 percent. Though the days of “cheap” 4 percent mortgage rates may be over, rates in 2016 should still be “low,” according to Frank Nothaft, chief economist of CoreLogic. Buyers might be faced with slightly higher mortgage rates, but they may find it easier to qualify for their mortgages. Economists expect tight mortgage credit standards to slowly loosen in 2016—but not quite to levels seen 15 to 20 years ago.
National Sales Climb
According to the National Association of Realtors®, national existing-home sales saw a significant climb in December, due in part to the Know Before You Owe initiative. These new mortgage rules, which came into effect October 3rd, delayed some transactions from November to December as lenders adjusted to the new consumer mortgage form. But while the delays accounted for some of December’s activity, they were not the only influencing factor; warm weather and the prospect of higher mortgage rates also contributed to the sales jump. Existing-home sales climbed 14.7 percent in December, which is 7.7 percent higher than a year ago. Sales haven’t been this high since 2006; however, sales will have to climb much higher to beat 2006’s record of 6.48 million.
Regional Home Sales
Northeast – Existing-home sales’ annual rate: 750,000, a rise of 8.7 percent. Sales are 11.9 percent above a year ago. Median price: $255,700, which is 5.3 percent higher than December 2014.
Midwest – Existing-home sales’ annual rate: 1.22 million, a 10.9 percent increase. Sales have risen 9.9 percent above December 2014. Median price: $171,000, a 7.5 percent climb from a year ago.
South – Existing-home sales’ annual rate: 2.27 million, up 14.6 percent. December sales are 4.6 percent higher than a year ago. Median price: $196,100, which is 6.8 percent above December 2014.
West – Existing-home sales’ annual rate: 1.22 million, a climb of 23.2 percent. Sales are up 8.9 percent from a year ago. Median price: $321,100, an 8.2 percent increase from December 2014.
When you decide to sell your house, it is important to be well informed about the local market and current buyer expectations. Take the emotion out of the process. Be realistic about price and know what you need to do to get the best return on your home investment.
1-626-252-0839 Sell While the Market is HOTT!
1-626-252-0839 Sell While the Market is HOTT!
The June 2015 buying season was the strongest one since the economic downturn, with sales increasing to their highest pace in 8 years. This was the sixth month in a row that national home sales increased year over year. What’s more, all regions of the country saw sales gains in June. Existing-home sales in the Northeast were 4.3 percent higher than a month ago and 12.5 percent higher than a year ago. In the Midwest, sales climbed 4.7 percent from May and were 12.7 percent higher than June 2014. Sales in the South and West rose 2.3 percent and 2.5 percent from a month ago, respectively. When compared with June 2014, sales were up 7.3 percent in the South and 8.8 percent in the West.
From “For Sale” to “Sold” in Record Time
Not only were more homes selling, they were also selling at remarkable speeds. Properties in June remained on the market for an average 34 days, down from 40 days in May. This set the record for the shortest selling time since the National Association of Realtors began tracking the statistic in May 2011. Forty-seven percent of all homes sold in June beat the 34-day sales pace by selling in less than a month.
A Bigger Investment
More buyers were looking for homes, but there were fewer homes available for sale. The high demand and short supply led to an increase in home prices in June, climbing to a national median all-time high of $236,400. In the Northeast, the median price was 3.9 percent higher than a year ago. The Midwest and the South both saw prices climb 7.2 percent higher than June 2014. The West, meanwhile, posted the highest year-over-year gains with 9.9 percent. Unfortunately, the high prices also affected home affordability for prospective buyers because more buyers were competing for higher-priced homes. To boost inventory, more building permits will need to be issued for condominiums and single-family homes.
Builder Confidence Rises
More builders are confident in the current housing market, because of improved job growth and strong sales in both the new and existing home markets. The National Association of Home Builders/Wells Fargo Housing Market Index climbed to a level of 60 in July (a number over 50 indicates there are more builders that see the current market as good, rather than poor.) Builders haven’t been this confident in the market since November 2005. The index that measures builders’ sales expectations for the next 6 months increased two points to 71.
Interested in a step-by-step guide on what is involved when buying a home? Send me an email: Yesenia@NewCenturyBroker.com