Category: Home Buying

This is the time of year that has home buyers and home sellers alike excited: The Spring Home Buying Season!

For buyers, it’s a great time to purchase a home because the school year is coming to an end and residents have all summer to move before it’s back in session. For sellers, it’s a great chance to reach a lot of home buyers as they navigate the market searching for their dream home.

In preparation for the spring home buying season, we wanted to share with you some tips on how you can shop smart as a home buyer. Enjoy!

4 Home Buying Tips for the Spring Market

Don’t just rely on the Internet for your home searches. While you can certainly find a treasure trove of information on the Internet, it’s not the only way to find your dream home. In addition to searching real estate websites, you might consider also getting out and canvassing homes for sale the old fashioned way. After all, Internet pictures and listing information only tell part of the story. For full context, you need to view the home in person. And don’t hesitate, either! This year’s spring home buying market is expected to be particularly competitive and so you want to make sure you get to that home before other buyers do.

Learn about current market values in trend. Obviously, every market is going to be slightly different and so it behooves you to lean about your local housing markets specific trends. Let’s consider the recent Case-Shiller 2014 home price index, which shows you how much of a difference there can be among major markets. In that report, San Francisco saw the largest annual regional gain at 9.3 percent. Meanwhile, other major markets like New York, Chicago and Washington DC saw less than 2 percent. A qualified and experienced agent can talk with you about current trends and how they impact you.

Lock in low mortgage rates now. Those near-historic lows won’t be around forever. Thus, make sure you get a good mortgage rate now. By doing so, you ensure that your monthly mortgage will be reasonable for you. And in some cases, you may qualify for a larger or more expensive home thanks to low mortgage rates. Here’s another reason to get a mortgage now: In January, the Federal Housing Authority (which backs loans for borrowers who make low down payments), lowered the annual insurance premium it requires from 1.35 percent of a home loan to just 0.85 percent. All told, the Housing Department estimates that will save FHA homeowners roughly $900 a year.

Keep “Sweeten-the-Deals” Strategies in Your Back Pocket. As previously mentioned, this is going to be a competitive spring home buying season. In other words, you may face a bidding war. So to prepare, consider ways that you can sway the seller in your favor. This might include an escalation card, which is the amount that you’d automatically be willing to pay above a competing bid. You might also consider foregoing certain contingency clauses. Contingencies are stipulations that allow buyers to get out of contracts. These include appraisals, home inspections and financing contingencies. By removing such contingencies, you’re likely to impress the home seller enough to want to accept your offer.

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We hope you found the above information helpful as a prospective home buyer. Please make sure to check back here soon for even more tips that will help you as you navigate the market!

Have a great day!

More and more home buyers are returning to the US housing market because they’re noticing favorable market conditions.

Specifically, buyers are feeling more comfortable about navigating the market thanks to interest rate stabilization and easier mortgage rules, according to a recent article by Reuters.

This is fantastic news for the overall health of the housing market. After all, it suggests that the national real estate market is likely to become more stable over time.

Trends That US Home Buyers Should Be Aware Of

According to the recent Reuters article, new home builders D.R. Horton Inc and Toll Brothers Inc. are seeing jumps in home buyer demand.

And they’re not the only ones.

In fact, new home builders everywhere are reporting improved home buyer enthusiasm, which has been a great relief to many of the companies after an underwhelming spring home selling season.

And pre-owned home sales are also reflecting similar home buyer enthusiasm levels.

Here’s what else the national home buyer should know about recent trends on the housing market:

• Interest rates decreased in October to their lowest levels since June 2013
• In fact, these interest rates are still considered to be at historic lows.
• The Dow Jones U.S. home construction index increased about 4 percent this year so far. And this increase came after the index already doubled between January 2012 and January 2014.
• Meanwhile, new proposed rules will allow buyers to purchase homes with down payments as low as 3 percent.

The proposed rules are great news for first-time home buyers, who are a key part of any housing market recovery. In fact, some experts believe that the housing market recovery will speed up as soon as more first-time home buyers enter the market.

And a faster housing market recovery is good news for everyone!

Meanwhile, In Canada…

The real estate market conditions in Canada are looking just as encouraging, with Canadian resale home prices continuing to rise in October.

Prices were up 5.4 percent from a year earlier, which is right on par with September’s year-on-year gain.

What’s more, October marked the 11th month in a row that the index has increased. Still, it should be noted that prices rose in only five out of the 11 metropolitan markets surveyed.

Prices rose 1.2 percent in Vancouver and rose 0.5 percent in Calgary. Toronto saw prices decrease 0.2 percent.

Your Central Source for Housing Market News

Check back here soon for more valuable updates on the current state of the national housing market and how they may impact you as buyers and sellers.

We pride ourselves on offering you relevant and reliable information that will help you make the best real estate decision possible for you and your family!

If you’ve been weighing whether now is the right time to enter the local housing market as a home buyer, we have some news to share with you that will help you decide.

According to a recent report from real estate data provider CoreLogic, U.S. home price gains are slowing down, despite an increase during the month of August.

This is great news for home buyers because it means that you have a fantastic opportunity to get a reasonable price on your next home before prices continue to rise!

What Every Home Buyer Should Know About Recent US Housing Market Activity

CoreLogic reported that home prices increased 6.4 percent in August when compared to last year.

Still, that figure is actually down slightly from the annual gain of 6.8 percent in July.

Here’s what else the recent housing market report revealed:

• The increase in home prices is also down when compared to how much they had been rising toward the end of last year. During that time, prices were rising as much as 12 percent.
• Home sales have been mostly stable throughout 2014, as have price gains.
• All states showed home price gains during the month of August, save for Arkansas where prices were stagnate.
• Home values rose 11.1 percent in Michigan, which led the pack. And values in California and Nevada came in second place with 9.2 percent.
• In terms of specific cities, the Houston area saw home values increase 11.1 percent compared to the previous year. Los Angeles, Atlanta, Dallas and Riverside also saw large gains.
• Home prices nationwide remain about 12.1 percent below their peak average in April 2006.
• Home purchases decreased 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August.
• Home sales decreased from a July rate of 5.14 million.
• Meanwhile, the pace of home sales dropped 5.3 percent year-over-year.
• Experts say that an annual sales rate of 5.5 million is considered a healthy market.
• Meanwhile, the median sales price has increased 4.8 percent over the last 12 months to $219,800, although that average dropped slightly during the month of August when compared to July and June.

Experts say that most of any uptick in sales activity (and thus, values) on the national housing market would depend on wage growth. That’s because wages are currently neck-in-neck with inflation, making it hard for home buyers to increase in buying power.

Still, there’s hope on the horizon:

Although hourly wages have only increased 2.3 percent over the last 12 months, there are signs that that activity will pick up in 2015.

Use Recent Activity on the National Housing Market to Your Advantage

As you can see, the market has stabilized itself enough where you could purchase a home and get a pretty good return on your investment as values eventually continue to rise.

So if you’re thinking about investing in real estate anytime soon, now is the time to do so!

And be sure to check back here soon as we continue to discuss with you important real estate trends that impact you!

The sluggish housing market over the last several years did not have an impact on Americans’ desire for bigger and fancier homes, according to a recent report from USA Today.

Evidently, demand continues to grow for these large estates, especially as the housing market across the nation improves.

This is a fascinating trend on the national housing market and one that is sure to impact both home buyers and sellers.

Americans Love to Own Large, Luxury Homes

The American Dream of owning a bigger and better home is still very much alive across the country.

In fact, as the recent USA Today article noted, many of today’s buyers still want a house that includes as many luxury amenities and features as they can think of – or at least afford.

This may include gourmet kitchens, deluxe bathrooms, spacious decks or screened-in porches.

While this is occurring, experts also note that homeownership rates have remained mostly stagnant. And income growth appears to be lagging behind the rising price of homes.

Meanwhile, the size of families and households continues to shrink, even though the houses themselves are getting bigger.

Experts say that this is because Americans still love the idea of owning a home that makes a statement about them, that demonstrates their status in society.

A Closer Look at This Housing Market Trend

Here is some relevant data on this housing market trend, based on US Census data:

• The average square footage of newly built single-family homes in the U.S. jumped by nearly 57 percent, from 1,660 in 1973 to 2,598 square feet in 2013.
• The Northeastern region of the country had the second-highest average square footage, which rose by 65 percent. Specifically, the square footage jumped from 1,959 to 2,636.
• Meanwhile, the average number of people per household in the U.S. dropped from 3.01 in 1973 to 2.54 in 2013.
• Specifically, families fell to 3.12 members from 3.48 during the same period of time.
• As a result of the construction of larger homes, the average sales price of newly built single-family homes in the U.S. skyrocketed by 419 percent from $62,500 in 1978 to $324,500 in 2013.
• Even if you consider inflation, that still quite a jump, experts say.
• The Northeast is home to the highest average sales price, which increased by 646 percent from $63,000 in 1978 to $469,000 in 2013.
• Between 2012 and 2013 alone, the average sales price of newly built single-family homes in the U.S. jumped by 20 percent: from $292,000 to $324,500.
• Meanwhile, the U.S. homeownership rate continued to drop during the fourth quarter of 2013: from 65.4 during the fourth quarter of 2012 to 65.2 percent.

So What Do Home Owners Get With These Newly Built Homes?

A better question is: What don’t they get?

Here’s a breakdown of these new construction homes and what they offer to buyers:

• Of the 569,000 homes built last year throughout the U.S., 188,000 (33 percent) contained three or more bathrooms.
• Meanwhile, 251,000 (44 percent) of last year’s houses featured four or more bedrooms, which is the largest share since 1973..
• Also, of the homes built last year, 301,000 (53 percent) came with a patio.
• And 361,000 (63 percent) featured a porch.
• Meanwhile 127,000 (22 percent) included a deck.
• Another trend that experts are seeing is more finished basements for added space, according to the report.
• These homes have mostly hovered around one and two stories, however, despite the increase in size. In fact, 233,000 (41 percent) of newly built homes last year were one story and 305,000 (54 percent) were two stories. Meanwhile, only 31,000 (5 percent) were three stories or more.

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Check back here soon for more pertinent information on the housing market and how it may impact you as a buyer or seller.

We’ve made it our goal to help you stay informed as you navigate the market. After all, the better informed you are, the better prepared you are for securing a successful outcome on the housing market.

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.

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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.