If you have been waiting for the right time to sell your home, there are many reasons experts are saying that the time has come. In an article written by Devon Thorsby, published by U.S. News and World Report, the reasons that 2018 might prove to be a good time to sell a home are listed.
First and foremost, the past few years of low inventory of homes for sale has left prospective home buyers more than ready to scoop up the perfect house. Their frustration with available homes has led many house hunters to begin their search earlier than normal with the hopes of purchasing a home before other buyers make their offer.
Additionally, interest rates are still relatively low. They have been slowly creeping up and are expected increase to 5 percent in 2019. Many home buyers are motivated to purchase a home sooner rather than later in order to secure a lower interest rate.
Thorsby details additional rationale for putting that “For Sale” sign up this year. Read the entire article here.
House hunters looking to purchase their first or next home are, undoubtedly, looking for a good deal on the home and a sales transaction void of big surprises or delays. It can be exhausting to get into back and forth negotiations over price. Not to mention potential discoveries in an inspection that need to be agreed upon before the sale moves forward. It can appear, at times, that the home owner is not in any hurry to sell their home and is not willing to budge on their conditions.
In an article by Stephanie Booth, published by realtor.com, she provides seven signs that a homeowner is anxious to sell their home quickly and willing to work out a good deal with a prospective buyer. For example, a home that is listed for sale by an estate might be a sign that the home can be purchased for a bargain price and be a candidate for a quick sale; the people who inherited the home might be out of town residents and/or looking to quickly liquidate the assets of the home.
Similarly, homes that appear to need some minor work such as landscaping and basic maintenance and are overall, just not spruced up to attract buyers, may indicate distress for the homeowner. They may not have the means or resources to make minor repairs or updates to the home and are just looking to move on. A home buyer might find an offer to be quickly accepted and be able to negotiate a quick close with a homeowner motivated to unload the burden of owning a home they can no longer afford to maintain.
Read the entire article for other signs that a home owner is desperate to sell their home.
As the season of spring begins to bloom all around us, so it goes for the spring real estate market. Many homeowners see spring as the perfect time to put their homes up for sale. As prospective home buyers begin their search for their first or next home, they may find that homes aren’t sitting on the market nearly as long as they have been in the past several months.
A recent report provided by a national real estate firm, Redfin, indicates that despite the fact the number of homes for sale has dipped 13 percent from last year at this time, actual home sales has surged 9 percent. Additionally, the number of days until the average home goes under contract has decreased by 11 days since last March, dropping to just 49 days. Lower inventory and fast paced home sales has also driven up the prices of home an average of 7.5 percent.
A CNBC article written by Diana Olick, goes on to detail that not only homeowners are benefiting from a spring jump start. Builders are also tracking a home sales increase of 6.7 percent from last year. However, new home prices have remained virtually unchanged. Olick suggests, this “…may indicate builders are trying to keep prices down in order to get more buyers in the door.”
Home buyers are looking to take advantage of the low mortgage rates and their desire to close the deal has resulted in some very favorable news for those looking to sell their homes.
Read the entire article.
Photo Credit: Guy Kilroy
According to an article published by the National Association of Realtors (NAR), the sale of existing homes nationwide has increased 6 percent since April 2015. Additionally, the median home price for existing homes is up 6.3 percent since last April. Although the total housing inventory is showing some upward movement, it is still lower than it was a year ago.
Lawrence Yun, NAR chief economist, indicated “The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there’s growing concern a number of buyers will be unable to find homes at affordable prices if wages don’t rise and price growth doesn’t slow.”
The supply of entry and mid-priced homes is still low and the market for these homes will likely be the most competitive in the coming summer months. However, proposed changes to FHA condo rules could eliminate some of the obstacles that stifle condo sales. These changes would allow more first time home buyers an opportunity to purchase a condo and enter the real estate market.
For more information, read the entire article.
Photo Credit: Marcel Suliman
Over the past few weeks, mortgage rate averages had increased slightly. However, the rates actually dipped lower last week and could continue to drop further this week. This decrease is a direct result of the release of economic data which pushed investors to purchase bonds. Consequently, mortgage rates averages dipped in line with the long-term bond yields.
Specifically, the 30-year mortgage rate average dropped to a low 3.61 percent, hovering near the lowest rates of 2016. Similarly, the 15-year rate average drifted down to 2.86 percent. Freddie Mac chief economist , Sean Becketti, summarized the mortgage rate trends for the year, “…Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates.”
An article released by the Washington Post by Kathy Orton, also noted credit availability has loosened as a result of programs from Freddie Mac and Fannie Mae which allow for a low down payment. Read the entire article.
Image Credit: Life’s A Beach Real Estate
This year’s real estate market has the potential to be the best we have seen in ten years. Experts from Freddie Mac have predicted that “total home sales, housing starts, and house prices will reach their highest levels since 2006…”
Several economic conditions are influencing the 2016 real estate market and are detailed in a recent article, “Is Housing Poised to Return to Pre-Crisis Glory?” published on DSNews.com by Brian Honea. Specifically, mortgage rates continue to remain low and are predicted to stay below 4 percent for the remainder of the year. Additionally, housing may become more affordable as the rate of home appreciation slows to a steady rate just below 5 percent. Lastly, the potential for very favorable labor conditions, such as increases in job growth and the potential for wage increases, are important factors which will also influence housing market.
For more details, read the article.
Photo Credit: tdini1
It’s easier than it has been in several years to qualify for a mortgage, thanks to eased credit score requirements. According to a recent article in the Spring Real Estate Guide in the Money publication, there has been a 15% increase since 2014 in the number of refinance applications approved.
Impacting the approval rate is the fact that the average FICO credit score required for a 30-year mortgage has dropped 10 points. In fact, borrowers with an average score of 695 might be able to qualify for a mortgage, which hasn’t been the case for years.
Additionally, those with a higher than average credit score (750-800) might find themselves qualifying for rates in line with borrowers with “excellent” credit (800 or above); the gap in the rate difference might now be close to zero.
More accessible mortgages, coupled with near record low mortgage rates make this an excellent time to secure a mortgage or refinance.
To learn more, read the entire article.
Despite the Federal Reserve rate increase late last year, the 30 Year Mortgage rate has continued to decrease. It has been predicted, in fact, rates could “head lower into record territory”. Nonetheless, Fannie Mae has just reported its worst monthly home purchase sentiment in 18 months.
A recent article on CNBC.com’s Realty Check outlines some of the reasons home sales have been on the decline so far this spring. For example, many buyers and sellers do not believe that this is the best time to purchase or sell a home. Consumers are concerned about the economy and job security; to add, mortgage credit availability has tightened.
The release of key domestic economic data this week could have an impact on the direction of the mortgage rates.