To start the year, housing experts all agreed on one thing: 2017 was going to be the year we would see mortgage interest rates begin to rise. After years of historically low rates, and an improving economy, the question wasn’t if they would increase but instead how much they would increase. Some thought we could see rates hit 5-5.5% by the end of the year.
However, the exact opposite has happened. Instead of higher rates as we head into the middle of 2017, we now have the lowest rates of the year (as reported by Freddie Mac). Here is a graph of mortgage rate movement since the beginning of the year:
Projections still call for an increase…
Four major entities (Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National
According to a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, mortgage professionals say that first-time buyers still believe a 20% down payment is necessary to buy in today’s market.
Nearly 40% of mortgage industry professionals surveyed believe that a lack of knowledge about the home-buying process is keeping potential buyers on the sidelines. Saving for a down payment is often cited as a huge barrier for first-time homebuyers to make the leap into homeownership.
If homeowners believe that they need a 20% down payment to enter the market, they also believe that they will have to wait years (in some markets) to come up with the necessary funds to buy their dream
The residential housing market has been hot. Home sales have bounced back solidly and are now at their fourth highest pace over the past year. Demand has remained strong throughout spring as many real estate professionals are reporting bidding wars with many homes selling above listing price. What about your house?
If your house hasn’t sold, it could be the price.
If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prospective buyers that will even see your house. See chart below.
Bottom Line
The housing market is hot. If you are not seeing the results you want, sit down with your agent and revisit the pricing
Here are five reasons listing your home for sale this summer makes sense.
1. Demand Is Strong
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing inventory is currently at a 4.2-month supply, well under the 6-months needed for a normal housing market. This means, in the majority of the country, there are not enough homes for sale to satisfy the number of
Beautifully renovated corner one bedroom plus den. Contemporary kitchen open to dining room, unique floor plan, unlike any other. Wood floors, high ceilings, washer & dryer, custom closets, peaceful private tree views from the balcony, and extra storage included. Luxury full service building, with valet service and 24 hour front desk, gym, amazing outdoor heated pool, dry cleaners, party room & more.
Monthly condo fee $1,463 includes utilities, cable tv, custodial services, maintenance, lawn care, water, sewer, professional management, master insurance policy, security, reserve fund and all amenities.
Spacious one bedroom at the sought after Elizabeth condo. Updated kitchen, wood floors & great closet space. Luxury high rise at Metro with reserved parking, 24-hour front desk, beauty salon/ barber shop, convenience store, exercise room, library, meeting room, newspaper service, party room, indoor pool, sauna spa.
$888.67 per month includes water, sewer, heat, electricity, trash removal, snow removal, professional managmenet, maintenance, lawn care, master insturance policy, reserve fund and all amenities.
Whether you are selling or buying a home, the real estate agent you hire is critical to guaranteeing your family makes the right decision. Most agents can walk you through the process and explain the industry ‘lingo,’ but you should expect so much more than that.
The housing crisis made everyone aware that truly understanding the real estate market is more complicated than it seems. Today, there are many questions your real estate agent must be able to answer to ensure your family is making the right decision. Here are just a few:
What impact does the movement in mortgage interest rates have on buyer demand?
With home prices increasing rapidly, are we headed toward another housing bubble?
If you are a homebuyer in today’s market, you need to make decisions fast. If a seller counters and you decide to sleep on it, you may wake up to a nightmare.
Welcome to the latest episode of “What’s Working Now!”
Recently, one of my sellers made a counteroffer and was surprised when the buyer wanted to sleep on it.
After all, we are in an incredibly competitive market right now, and homes are selling fast.
The buyer initially made a great offer, but my seller didn’t think it was quite great enough. We adjusted the offer just a tad and made a counteroffer. Instead of making a decision right away, the buyer said they would sleep on it.
In the meantime, I contacted several agents who had been through the property. Some
If you are debating listing your house for sale this year, here is the #1 reason not to wait!
Buyer Demand Continues to Outpace the Supply of Homes for Sale
The National Association of REALTORS’ (NAR) Chief Economist Lawrence Yun recently commented on the inventory:
“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market.
Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase”.
The latest Existing Home Sales Report shows that there is currently a 4.2-month supply of homes for sale.
Beautifully renovated corner one bedroom plus den. Contemporary kitchen open to dining room, unique floor plan, unlike any other. Wood floors, high ceilings, washer & dryer, custom closets, peaceful private tree views from the balcony, and extra storage included. Luxury full service building, with valet service and 24 hour front desk, gym, amazing outdoor heated pool, dry cleaners, party room & more.
Monthly condo fee $1,463 includes utilities, cable tv, custodial services, maintenance, lawn care, water, sewer, professional management, master insurance policy, security, reserve fund and all amenities.
