Looking To Buy A House This Fall? What To Consider:
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In the market to buy a house? A look at this year’s real estate market can help buyers make informed decisions.
The housing market is generally very strong. The U.S. Department of Commerce recently announced that new single family home sales surged in July to a seasonally adjusted rate of 654,000 units – a 12.4% increase from June – thus reaching their highest level since October 2007. Additionally, while tapering off in July, existing home sales leaped ahead in May and June to what was their highest pace in almost a decade, according to the National Association of Realtors®.
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Looking ahead to this Autumn, the real estate market could remain strong. The primary reason: historically low mortgage rates driven by rock-bottom interest rates, which expand buying power and create a sense of urgency for buyers to capitalize on low rates while they can. According to Freddie Mac, the monthly average commitment rate and points on a 30 year fixed-rate mortgage decreased to 3.44% and .5 points in July 2016 as compared to 4.05% and .6 points in July 2015.
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The nation’s economic engine also appears to be chugging along. As a result, we can hope to see continued job growth, which should mean that more buyers will enter the housing market. The nation added 255,000 jobs in July 2016, as compared with 215,000 jobs in July 2015, according to the U.S. Bureau of Labor Statistics.
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New buyers are entering the housing market. In fact, the strong numbers in June’s existing home sales report were boosted by a greater share of sales to first-time buyers, which was 33 percent — a figure that has not been seen in nearly four years — according to the National Association of Realtors. In July the share of first-time buyers was 32% —up from 28% a year ago.
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First-time buyers represented 30% of sales in all of 2015 and, thus far in 2016, represent 31% of all buyers. This is partially because of increasing rental prices caused by demand and supply pressures, making savvy renters — who have been paying increasingly high prices, especially in major cities — think again about the benefits of buying a home. Steve Udelison, Forbes Contributor.
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Are 'Great Deal' Foreclosed Fixers Gone Forever?
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According to the National Association of Realtors (NAR):
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Foreclosures (in which owners default on payment and title reverts to the lender) and short sales (in which owners sell at a loss, sometimes for less than they owe) are at the lowest levels they’ve ever been since NAR started tracking them in October, 2008: 5% of sales in July, down from 6 percent in June and 7 percent a year ago. (4% were foreclosures, 1% were short sales.)
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Foreclosures sold for an average discount of 18% below market value. Short sales were discounted 16%.
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Properties typically stayed on the market for 36 days in July, up from 34 days in June but down from 42 days a year ago.
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Short sales were on the market the longest at a median of 95 days in July, while foreclosures sold in 54 days and non-distressed homes took 34 days.
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“Pursuing a property in a short sale or foreclosure demands patience from interested buyers as supply is small and the process can be complex, inconsistent, slow or cumbersome,” says NAR Chief Economist Lawrence Yun. Still, he said, you might score a deal, but you need to be careful. Vanessa McGrady, Forbes Contributor
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We will help you through the complete process (start to finish) whether you are buying or selling a home. We love putting our best foot forward to assist you in either finding your “Dream Home” or placing your home up for sale.
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ENCOMPASS Real Estate
6955 Aliante Pwy, #108 / North Las Vegas, NV 89084
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