Category: Home Buying

If you’re currently trying to sell your home on the local housing market, great news: it’s about to get very, very busy for you.

That’s because national real estate experts are projecting that this spring will see even more home buying activity than is already expected for this time of year.

Why? Because of pent-up home buyer demand from the unusually cold winter we had.  Home buyers who might have navigated the market in late 2013 and early 2014 ended up holding off because of the bad winter weather.  Can you blame them?  House hunting in frigid temperatures while trudging around in the snow and bad weather is no fun at all.

So now that it’s warming up outside, these home buyers – along with those who would have normally entered the market in spring – are flooding the real estate market.

More Trends to Expect This Spring on the National Housing Market

According to a recent Bloomberg article, the spring home buying market (which usually runs from March to June) was delayed because of the unusually bad winter we’ve had across the country.

This late start meant that home sales declined in February to the lowest level since mid-2012. And the number of contracts signed reached the lowest level since 2011.

Meanwhile, applications for mortgages to buy homes dropped to the lowest since 1995 during the month of February.

While this may all indicate a slowdown, experts are saying that a lot of this activity was related to the unseasonably bad winter. Consequently, they expect home buying to surge over the next few months.

Here are the predictions provided by real estate market experts:

• Sales of existing homes will increase to 5.14 million in 2014, compared with 5.07 million last year.
• Mortgage lending will total $661 billion, compared with $652 billion last year.
• The average U.S. rate for a 30-year fixed mortgage will continue to rise from last year’s figure, when it was 3.57 percent.
• First time home buyers will continue to increase in the market. For instance, in January, they made up 26 percent of the market. And in February, that figure rose to 28 percent.
• The inventory of available homes will decrease. As of recently, the inventory was at 5.2 months.
• Some markets are leaner than others. For instance, in Boston and Boulder, the number of homes for sale in February was down about 30 percent from the year before.

Keeping You Updated With the Real Estate 411

Happy spring home buying season to all the sellers out there! It’s definitely a great time to capitalize on the home buying energy and get a great price for your property.

And make sure to check back here again in a couple of weeks. You’ll be provided with even more news that will aid you as you navigate the market.

Home buying fervor has driven home prices to their largest annual gain since 2005, according to a recent article in the Wall Street Journal.

Evidently, home buyer interest – fueled by low mortgage rates as well as reduced inventories – helped drive prices up in 2013.

Now, experts are saying that home buyers and home sellers can expect price gains to level off in the wake of the home buying frenzy.

Key Statistics For National Home Buyers or Sellers

According to the Standard & Poor’s/Case-Shiller price index, U.S. home prices increased 11.3 percent year-over-year during the fourth quarter.

Meanwhile, the Case-Shiller index that measures home prices in 20 major metropolitan areas reported that prices increased 13.4 percent during that same period of time.

And another index, which is calculated by the Federal Housing Finance Agency, reported that prices increased 7.7 percent, to an eight-year high.

More News You Can Use

Here’s what else real estate analysts recently reported about the national housing market:

• Home priced decreased 0.1 percent from November to December in the 20-city index.
• That marked the second straight monthly decline.
• Experts noted that the monthly declines during the fourth quarter were actually the smallest for that period in eight years.
• Meanwhile, in January, sales of previously owned homes dropped 5.1 percent from a year earlier, according to the National Association of Realtors.
• Home builders across the country reported increased profits in recent months. For instance, Luxury builder Toll Brothers said it saw a 21 percent year-over-year increase in its average sales price during the quarter ending in January.
• However, the builder also reported that new contracts for homes during that same quarter decreased 6 percent year-over-year.
• Meanwhile, all 20 cities reported annual gains last year, including Las Vegas with the largest at 25.5 percent and San Francisco following close behind with 22.6 percent.
• Across the US, home prices have increased 21 percent after bottoming out in early 2012.
• Home prices, which dropped 35 percent between 2006 and 2012, now are 21 percent below their previous peak.
• Now, home prices are at the levels they were in mid-2004.

Experts say that the rising home prices are good in one sense, although they may also curb home buyer activity as homes become increasingly less affordable.

Still, in the long run, the leveling out of price gains is a good thing because it means a more stable and robust housing market.

Your National Real Estate Experts

We hope you stop by our blog again soon to get the latest information on national housing market activity.

We’re your national real estate experts and we’re here to help you make an informed decision on the market as a buyer or seller!

Changes are afoot on the national housing market that suggest that this year is going to increasingly favor the home seller. And that means buyers will likely be paying more for real estate in 2014.

According to a recent news article, the National Association of REALTORS® recently reported that nearly 5.1 million homes sold last year, which is the highest rate it’s been since 2006.

Meanwhile, values are rising as home sellers grow increasingly tired of selling their home for “cheap.”

Although this is resulting in longer Days on the Market averages, it also means that home prices are rising.

A Look Back at 2013 Activity

Here’s an overview of national real estate activity, according to December data:

• From January to December 2013, there were 4.87 existing home that were sold on a seasonally-adjusted annualized basis.
• That figure is one percent higher from the month before.
• For 2013 overall, there were 5.09 million home sales, which is a nine percent increase from the year before.
• What’s more, that figure is the highest reading it’s been since 2006.
• Meanwhile, home builders reported increased buyer foot traffic. In fact, they said the activity had reached a 7-year high.
• And by December 2013, the home supply was down to 4.6 months. This means that if activity stayed the same, all available homes for sale would be sold in that time frame.
• The latest report also revealed that homes are not selling as quickly as the year before.
• While 28 percent of homes sold in 30 days or less, the Median Days on the Market actually increased substantially, from 16 to 72 days.
• In fact, Days on the Market has been steadily increasing for the last seven months.
• Here’s another thing to note: home prices have increased more than 20 percent in some regional housing markets over the last year, in part because of bidding wars.
• In December, foreclosed homes had a median Days on Market of 67 days.

A Look Ahead to 2014

Experts predict that cold weather in December and January may have created even more pent-up home buyer demand, which could bode well for housing market activity in the coming months as temperatures warm up.

Experts are also saying that while home sales have slowed over the last several months, competition is greater than ever.

This is aided by the fact that home sellers are feeling more confident than ever. They’re no longer worried about whether their home will ever sell, they’re worried about getting the best price possible for their home.

Thus, many have raised their list prices to values that they think are reasonable instead of pricing them undervalue in an effort to attract buyers.

While this might slow the momentum a little (and thus lead to longer Days on the Market), the long-term effect will be that prices will rise as buyers realize this is not a passing trend.

Your #1 Source for National Real Estate News

Please check out our website again soon to receive national real estate market updates and see how recent activity may affect your efforts as a buyer or seller.

There’s great news from Fannie Mae: Buyers may be eligible to receive up to 3.5% in closing cost assistance through October 31, 2011 as part of the HomePath buyer incentive.

To be eligible for this incentive, the following qualifications must be met:

1. Buyers and/or selling agents must request the incentive upon submission of the initial offer in order to be eligible.
2. The initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
3. The sale must close on or before October 31, 2011. No exceptions will be made to this deadline.
4. Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
5. Buyers must sign an Owner Occupant Certification Rider to the real estate purchase addendum.
6. If the buyer’s total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.

Dont hesitate – offers submitted after September 15, 2011 may be difficult to close by the October 31, 2011 deadline. 

Contact us for specific details on this incentive offer and for all of your Fannie Mae HomePath financing questions.

1. With falling home prices and near-record low mortgage rates, now really is a good time to buy. First and foremost, buyers need to make sure that they have solid job security before deciding to buy a home. Job security is probably the number-one consideration that people should have when purchasing a home. Buyers that feel comfortable enough about their income are in a great position to take advantage of some very attractive real estate deals.
2. Now more than ever it is important for potential buyers to use an experienced real estate professional. There is very little downside and a lot of upside to getting a professional working on your behalf to help you find the right house. Foreclosures and short sales, an increasing large portion of the current market can involve legal and other hassles often best handled by an experienced professional. Look for an exclusive buyer agent who will have your interests at heart and can help you with strategies during the bidding process. Remember, sales commissions are paid by the seller, so there is no cost to the buyer to have their own representation.
3. Start by shoring up your credit. Since you most likely will need to get a mortgage to buy a house, make sure your credit history is as clean as possible. Get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
4. Aim for a home you can afford. The rule of thumb is that you should buy a house that will cost about two-and-one-half times your annual salary. There are many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford. If you have a home to sell, wait to look for your next home until you have a contract on your current home. That way you will know exactly how much you have to spend on your new home.
5. Before house hunting, get pre-approved. Getting pre-approved will put you in a better position to make a serious offer when you do find the right house. Pre-approval from a lender is based on your actual income, debt and credit history and is a fairly simple process.
6. Use a knowledgeable reputable mortgage lender. Be sure to select a reputable lender that will work with you to get the best deal possible. Look for a lender who will put all costs in writing, carefully explain loan options, encourage you to ask questions, and not rush you into a quick decision.
7. 6% is a good rate. With all the headlines about 30-year mortgage rates dipping below 5 percent, many consumers believe they’ll be able to lock in a rate in the high 4’s. But with today’s tighter lending standards, many borrowers won’t qualify for the most attractive rates. Keep in mind, trends of 30-year, fixed-mortgage rates over the past few decades, it’s clear that any rate that starts with a 6 is still very attractive. If you qualify, there are many lenders that offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.
8. Choose carefully between points and rate. When selecting a mortgage, you typically have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time, five or more year, it’s usually a better deal to pay the points if possible. The lower interest rate will save you more in the long run.
9. Don’t buy if you plan to live in the home short term. Purchasing a home in today’s market only makes sense if the buyer plans to live in the home for at least three to five years. Those who plan on selling the property sooner might not provide the property enough time to recover the costs of buying and selling and any lost value that may have occurred in the short term. Even if a home declines in value over a short term, it can still be a good investment if you give the market enough time to recover.
10. Before making an offer on a home examine the selling prices of similar, nearby properties. Make sure the sales information is fresh because the market is constantly changing. For an accurate gauge of home prices in a given market, buyers should look for comparable sales data that is as recent as possible. Your opening bid should be based on the sales trend of similar homes in the neighborhood.

Home Buyers don’t miss out! The tax credits offered by the Federal Government has been extended through April 30, but is not expected to be extended again.

First Time Home Buyers can receive up to $8,000. The credit is for 10 percent of the purchase price of the home and does not need to be repaid. This is a direct credit meaning that you do not need to have incurred any tax obligation to receive money. Also, beginning November 7, 2009, an additional category of new homebuyers, long-time residents (who owned their own homes), was added. The credit for this group is a maximum of $6,500, which, with some exceptions, does not have to be repaid.

To be eligible for a tax credit a buyer must be under contract by April 30, 2010 and close on the property before July 1, 2010.

To get details on tax credit options visit the IRS Website at: www.irs.gov.