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Cost of Waiting a Year
Thinking about waiting a year to buy? May want to rethink, it could cost you. The above graphic shows both the projected appreciation* and projected interest rate*. What would you do with an extra $127.87 a month ($1,546 a year!)?
*nar.com, marketwatch.com
Where are mortgage rates headed?
This is one of the most common questions folks ask me. Where are rates going? What will happen after the election? What will happen after the holidays? What will happen next year? Should I wait to see if they go lower? Should I buy now before the go higher?
Below is a fantastic article I'd like to share with you folks.
The best people we can go to on this issue are the people who deal with it on a daily basis –The Mortgage Bankers Association (MBA). Here is what was reported by MarketWatch in a recent article:
“After reaching record lows in 2012, mortgage rates are expected to creep up slowly in the year ahead, the Mortgage Bankers Association predicted.
Rates on the 30-year fixed-rate mortgage are expected to average 3.8% in the fourth quarter of 2012, rising to 3.9% in the first quarter of 2013 and eventually rising to an average 4.4% by the fourth quarter of next year.”
If the MBA is correct, mortgage interest rates could inch up almost a full percentage point in the next year. Tomorrow, we will explain what that means to a potential buyer.
http://www.kcmblog.com/2012/11/06/where-are-mortgage-rates-headed-2/
A Step Ahead
Utah is a step ahead.
Our local market continues show improvement in just about every measure.
September data shows we are on track towards recovery.
· Pending Sales: Up 22% from same period last year.
· 5 consecutive months of gains (first time since 2007 5 STRAIGHT gains!)
· Median Sales Price: Up 10% from same period last year.
· An average of 45 homes were sold per day in September.
· Number of Homes Sold: Up 21% from last year.
Nationally, the National Association of Realtors are releasing numbers that also continue to show strong signs of recovery.
· Pending Sales: Up 14.5% from same period last year.
· Existing Sales: Up 10% from last year.
· Median Sales Price: Up 11% from same period last year.
· Less than 1 in 4 properties are distressed (Foreclosure or Short Sale)
In summary, both nationally and locally, housing is strong compared to recent years. No, we aren’t back to where we were, but were headed in the right direction. Interest rates remain attractive and low levels of inventory make it a great time to sell. Ask around, talk to your co-workers, friends, and family of anyone who have recently looked for a house and they’ll tell you how competitive it is. Multiple offers and homes selling at or above list are happening daily. The ship has sailed for those “killer” deals.
My take: Having the power of knowledge will help you maximize your profit in our competitive market. Make sure you have the right player on your team to help you sell for more and buy for less.
Sources:
http://www.realtor.org/news-releases/2012/10/september-existing-home-sales-down-but-prices-continue-to-improve
http://www.realtor.org/news-releases/2012/10/september-pending-home-sales-show-slight-improvement
http://en.calameo.com/read/00161630611130b22e1c2
September Headlines
Its hard not to notice all the headlines this month. Of 20 major metro markets evaluated, more than 3 quarters of those markets are showing increases in prices and decreases in inventory. This is having a positive influence on our housing recovery. Distressed property inventory is also decreasing, according the National Association of Realtors, now less than 1 in 4 properties are distressed (reo/short sales). As we continue to shed distressed inventory, we can continue to see signs of positive and upward trending housing recovery and prices.
Missed the headlines? No worries, here are 5 different publications from this month including our local Salt Lake publication.
September – Time to Sell?
The above graph was taken from the National Association of Realtors and represents national numbers. Likewise, here in Utah, we are experiencing very similiar numbers. In second quarter of 2012, for the first time in 5 years, the median single family home price increase 6%(*slrealtor.com) year over year.
Our current inventory has continued to decrease from this same point last year. Salt Lake has maintained an under 6 month supply of housing inventory which is considered to be a "sellers market" level of inventory. This low inventory is causing an increase in prices, and in many cases, multiple offer situations for sellers.
Also worth noting is the percentage of distressed property sales in continuing to decrease. This is important because when there is less distressed properties, median prices increase.
So is now the time? The answer is, well, only you can answer that question. Some of you may be holding out to sell. You may be reading the headlines both nationally and locally that prices are rising every month and you may keep holding out. I understand the logic, but let me caution, we do have seasonal trends. Historically, we see an increase in prices in the first half of the year as opposed to the second half. We can continue to expect to see a steady release of distressed inventory (what I mean is not just a bunch at one time) that may be coming as a comparable property. Who knows how many sellers who NEED (relocation, life event, bigger home, etc) to sell within the next year may sell quickly at the first sign of decreasing prices? What we do know now is: Low inventory, low rates, qualified buyers, and increasing prices.
