Category: Home Selling

Real estate experts all across the country were thrilled to hear the latest numbers on the national housing market recently.

That’s because sales of existing U.S. homes showed a slight increase between March and April, reversing a 12-month trend in which home purchases had been dropping.

This wasn’t the only good news that the National Association of Realtors had to share, either.

Experts Encouraged By Recent Sales Data for National Housing Market

Here are some of the highlights of the recent report from the National Association of Realtors:

• Home sales increased 1.3 percent from March to a seasonally adjusted annual rate of 4.65 million.
• The purchase of homes over the last 12 months had dropped 6.8 percent before April’s numbers were released.
• The majority of gains were concentrated in the condominium market, which saw 7.3 percent growth.
• Meanwhile, sales of single-family homes were up 0.5 percent during the month of April.
• Still, home buying is significantly below its 2013 rate, which is when 5.1 million existing homes were purchased. And that’s still far below the 5.5 million rate that usually indicates a healthy market.
• Median home prices increased 5.2 percent to $201,700 in April, which was the slowest increase since March 2012.
• Home buying increased in the West and the South, although they mostly decreased in the Midwest and remained flat in the Northeast.
• Home sales continued to decrease for homes priced below $250,000, although they continued to increase for those homes priced above $750,000.
• First time home buyers represented 29 percent of all sales, which is far below the historical average of 40 percent.
• Average rates for fixed, 30-year mortgages were around 4.2 percent recently, compared to 3.51 percent a year ago.

Experts say that sales may have been higher had it not been for a few confounding factors, such as snowstorms and brutal cold weather in the Midwest and Northeast during the first couple of months of 2014.

Other factors include higher home prices and rising interest rates.

Still, experts remain optimistic. For instance, the April report indicated that more home sellers are listing their properties on the market. In fact, the market has a 5.9 month supply of homes right now, which is up from 5.2 a year ago.

Keeping You Informed on National Developments

We love getting the opportunity to share some positive news about the national housing market with you and we hope you’re as encouraged by the recent data as we are.

Check back here soon for more updates on the current state of the national housing market and how it may impact your efforts as a buyer or seller.

The national housing market is dealing with an issue of supply and demand right now and it’s impacting both buyers and sellers.

Specifically, the national housing market has too few people selling their homes compared with the number of people who want to buy homes, according to a recent report from Standard & Poor’s/Case Shiller.

This is consequently driving home prices up, which in some cases is making available homes for sale unaffordable to buyers.

It’s certainly a unique situation and one that both home buyers and home sellers are going to need to learn how to navigate in the coming months.

Recent National Housing Market Activity Explained

Here’s what we know based on the recent Standard & Poor’s/Case-Shiller 20-city index:

• Last year saw a 13.4 percent jump in the average price of a home sold.
• Average prices nationally are expected to increase by single digits this year.
• The gains are expected to be the strongest in those cities with strong job growth, including Seattle and Austin.
• Meanwhile, lenders are beginning to ease barriers for those with less-than-ideal credit, meaning that these home buyers could find it easier to qualify for a mortgage and buy a home.
• Currently there are about five months worth of homes on the market, compared with 5.9 months in 2012 and 8.3 months in 2011.
• Part of the explanation of low housing inventory is the fact that about 19 percent of home owners remain underwater on their mortgages, which may deter some sellers from listing because their sales price may be less than what they owe.
• And an additional 37 percent are “effectively underwater,” which means that their sale would not be enough to cover the cost of listing their home as well as putting a down payment on a new home.
• But luckily, warmer weather, job growth and a more robust economy are expected to help encourage more home owners to list their properties this spring.

Experts also believe that the rise in home prices will help the problem correct itself. After all, as sales prices continue to rise, it will lure more home owners to list their properties.

This in turn could lead to more listings, which might ease the bidding wars among buyers and help lower sales prices to make them more affordable.

And That’s Paramount to First-Time Home Buyers

After all, this segment of the market really fuels market growth and promotes overall market health.

But right now, these first-time home buyers are buying fewer homes because of lack of affordability. For instance, they purchased 1.5 million homes in 2013, which is about 500,000 fewer than they would have typically, on average.

Still, that situation appears to be improving as well, albeit slowly. For instance, about 738,000 people ages 25 to 34-year-old found jobs in the past year, meaning they will have more disposable income and financial power to buy their own home

Add to that the fact that mortgage companies have eased their lending standards slightly to reach a larger audience and you have the right conditions for a greater housing market recovery.

Keeping An Eye on the National Housing Market for You!

We hope you found the above information helpful as a home buyer or home seller. We definitely believe that one of the surefire ways to have a successful outcome on the local housing market is to stay informed about what’s going on at the national level.

Check back again here soon for further updates. For now, we hope you have a great day!

As real estate experts, we’re always looking for market indicators to suggest whether the market is favoring sellers or buyers.

We look at a variety of factors, including average list price,  median sales price and price per square footage.

Another indicator we look at is the days that a home spent on the market before it ultimately sold. And if the latest data is any indication, this metric is certainly starting to favor home sellers!

Why Home Sellers in the US Should Be Optimistic

According to the most recent real estate data, properties listed in September 2013 spent an average of 86 days on real estate websites, compared with 116 days last year!

This suggests that homes are selling nearly a month quicker than they did this time last year.

Here’s what else the most recent real estate data reveals:

• Properties listed in all 30 of the largest metro areas in the country sold quicker in September when compared to last year.
• Those homes in the San Francisco Bay area were listed for the fewest number of days at 48, followed by Sacramento with 59 days and Dallas with 60 days.
• Comparatively, in 2010, homes listed were on the market an average of 119 days.

Experts say that a declining inventory of homes for sale has attracted more eager buyers to the market, resulting in fewer days on the market for homes for sale.

Historically low mortgage rates, an improving economic climate and depressed home price values are further encouraging this activity.

Canadian Real Estate Market Faring Well Too!

Although data on average days on the market was not immediately available, other real estate indicators suggest that Canada’s real estate market is faring just as well!

Here is some recent encouraging data released by the Canadian Real Estate Association:

• Although the number of newly listed homes decreased by 0.8 percent from September to October, the Canadian housing market remains in balanced territory.
• The national average sale price increased 8.5 percent year-over-year in October.
• The MLS® Home Price Index (HPI) increased 3.5 percent year-over-year in October.
• Between September and October, national home sales declined by 3.2 percent.
• Meanwhile, actual (not seasonally adjusted) activity was 8.3 percent higher from October 2012 to October 2013.

The Ultimate Source for Real Estate News

Check back here soon for more updates on how the national real estate markets in the United States and Canada are faring!

And for expert help on your own home-buying or home-selling goals, please contact us today!

If you’re a current home owner who is wondering whether to enter the market, we’re here to tell you that now is a great time to do so!

Here’s the top reason why home owners should list their home right now: Home prices are on the rise!

NBC News recently reported that home prices have increased 7.7 percent in the year through June.

Home buyers wanting to enter the market before prices climb even higher have only encouraged this upward momentum.

What Else Home Sellers Should Know About the National Market

NBC News revealed even more interesting data about the current state of the national housing market and its submarkets:

• The Federal Housing Finance Agency reported that June home prices were 17 percent higher than a year earlier in the Pacific area, including California and Washington.
• In the Mountain region (which includes Nevada and Arizona), home prices increased 11 percent.
• Meanwhile the Middle Atlantic region (which includes New York, New Jersey and Pennsylvania) saw home prices increase by 2.5 percent.
• The National Association of Realtors reported that the median price of previously owned homes increased 13.7 percent for the year through July. That figure was $213,500.
• Sales of previously owned homes increased by 6.5 percent in July to the fastest pace since November 2009.
• The inventory of homes for sale is around 5.1 months nationally right now.

Experts do caution that higher borrowing costs may end up pricing some buyers out of the market, consequently slowing the pace of home sales.

For instance, mortgage applications for both home purchases and refinancings decreased for a second straight week recently as rates increased, according to the Mortgage Bankers Association.

Still, experts note that home prices are still relatively affordable by historical standards in most local markets, encouraging continued activity.

They added that the continued increase in home sales and home prices will depend heavily on the health of the overall job market. 

National Real Estate Experts

Check back soon for more updates on the current state of the national housing market and how it’s affecting local markets in your community.

Whether you’re a home buyer or home seller, we’re here to provide you with valuable information that will help you navigate the market.

The National Association of Realtors recently released some data that is sure to be encouraging for anyone thinking about selling a home.

Evidently, existing home sales increased for the second month in a row in May to a level that is significantly higher than last year.

What’s more, median home sales prices saw double-digit year-over-year increases.

All of this suggests that the national housing market is indeed rebounding.

Overview of the Recent Report from the National Association of Realtors

Here are some more highlights from the recent report:

• Sales of existing homes (which include single-family, town homes, condos and co-ops) increased 4.2 percent to a seasonally adjusted rate of 5.18 million.
• In April, that figure was 4.97 million.
• What’s more, sales of existing homes were 12.9 percent higher than the 4.59 million-unit pace that the nation saw in May 2012.
• Sales of existing homes have reached their highest levels since November 2009.
• In November 2009,  a lot of buyers were taking advantage of the tax stimulus program. Thus, the market jumped to 5.44 million
• Existing home sales have shown year-over-year increases for the last 23 months.
• Meanwhile, the national median price has seen year-over-year increases for the last 15 months.
• The total housing inventory at the end of May jumped 3.3 percent to 2.22 million existing homes for sale, which represents a 5.1-month supply.
• A year ago, the total supply of existing homes for sale was 6.5 months.
• In May, the median home sales price for existing homes was $208,000, up 15.4 percent from May 2012.
• For the last six months, the median existing home price has seen double-digit increases.
• Meanwhile, the total number of distressed homes hasn’t changed since April, representing about 18 percent of May sales.
•  Still, that’s the lowest supply of distressed homes on the market since October 2008.

Analysts say that because of the high demand for homes, buyers across the country can expect a limited supply of available homes for sale for the rest of 2013.

The only likely remedy for the housing shortage is an increase in new home construction by 50 percent, experts say.

Experts also noted that the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased from 3.45 percent to 3.54 percent between April and May.

In May 2012, that rate was 3.8 percent.

National Real Estate Trends that Affect You

The type of housing market environment we’re seeing right now is nearly opposite of what we saw during the housing boom.

Just six years ago, there was plenty of overbuilding going on all across the nation.

Today’s housing market is marked by a great shortage of homes for sale.

Pair that with a lot of pent-up home buyer demand as well as a 29 percent increase in buyer traffic and you have favorable conditions for home sellers across the country.

• All Realtors are NOT the same. Make sure you hire someone who is experienced in the local market, is a seasoned negotiator and has a track record of bringing transactions to a close. Many things can happen from the time you place your home on the market until the day you sit at a closing table. A qualified Realtor will help navigate these waters. And quite frankly, some real estate agents simply work harder than others. Hire one that will work hard for you. You should know how long on average it takes a realtor to sell a listing. This information is readily available from the Real Estate Board. This performance measurement will help you predict how long your home will be on the market before it sells. Finally, ask for references. A real estate professional has plenty.
• Know what is going on in your local market and in your own neighborhood. Real Estate prices are based on what is going on locally. Trends in the market are simply based on supply and demand. With this said, realize that an increase of foreclosure in the market, increases the inventory, which drives down home prices. It would be wise to ask your prospective realtor about current foreclosure inventories.
• How much do you need to net on your home? Make sure you know your current mortgage balance (to be paid off at closing) and all of the costs involved in selling your home. An experienced realtor will have no problem helping you understand these costs before you hire them.
• The seller pays the real estate sales commission, not the buyer. There is very little exception to this rule.
• Condition of the home matters significantly, especially when inventories are high and buyers have lots of homes to choose from. Take a hard look at your home and make those necessary repairs – mechanical and cosmetic.
• Your home may not be priced at the amount you feel it is worth, especially in today’s marketplace. Therefore the projected price of your home may not cover what you currently owe on your house. You may have to concede on what you think your home is worth based on the agent’s best estimate of your home’s value. Ultimately the market will determine the value of a home. If it is less than you owe and you need to sell, you may want to consider a short sale. Be aware of a questionable sales practice called “buying a listing.” This is when an agent is willing to start your listing out at “your price” not market value and agrees to drop price later. By suggesting that you might get a higher sales price than other agents recommend, this agent is buying the listing. Most likely, he is quite doubtful that your home will actually sell at the listed price. The intention from the beginning is to eventually talk you into lowering the price. Why do some agents “buy” listings this way? There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. On the other hand, there are some agents who engage in this sales practice routinely.
• Understand that you’re only legally obligated to an agent if that agent fulfills his legal and contractual obligation to you. If at any time an agent violates your confidence, continually does nothing to promote your home or in any other way violates your agreement, then you can legally fire him. It is best, however, if you and your agent can jointly agree to dissolve the contract.
• Know how your home will be marketed. Most buyers today access the internet as their first stop for home shopping. How much time, energy and money does the realtor allocate to internet marketing? Assure that the realtor you choose has a diverse arsenal of marketing strategies that have been proven to be effective in your market. Look for special ideas, consistency and persistence in their marketing plan. Also make sure that there is a system for tracking and follow-up with all parties who show interest in your home.
• Make sure that the realtor that you entrust the sale of your home to can also be a resource for the entire process.You will likely need referrals for reputable companies that work in the real estate industry, such as: a closing company, lender, appraiser, contractor, mortgage lender, banker or real estate attorney. A reputable agent will have on-going relationships with other reputable companies in the industry and happily give you referrals.
• Smart realtors guarantee their services. They do this for two reasons. First they are confident that they can perform for you because of their experience, commitment, and work ethic. Second it is smart marketing for an agent to guarantee his/her services.  These days, nearly everyone offers a guarantee – television manufacturers, car dealerships, even banks offer guarantees.  Real Estate Agents on the cutting edge of marketing guarantee their services.