Posts Tagged ‘existing home sales’

Why should I refinance?

Positive statements by the Federal Reserve Board regarding the pace of future hikes in interest rates and the release of weak employment data have served to bring rates down moving into the spring selling season. This unexpected move in rates give Americans a unique opportunity to save money through refinancing or making their new dream home more affordable. From mid-September of last year to early-April of this year, Freddie Mac has reported that average rates on a 30-year fixed loan have moved down slightly more than one-half of one percent. This amounts to a savings of more than $1,500 annually for a $300,000 mortgage and $45,000 over the life of the mortgage. Recently, Black Knight Financial Services found that, in light of recent interest rate decreases on home loans, 7.1 million Americans would currently benefit by refinancing. In addition, Zillow has reported that 5.2 million renters are planning to purchase a home in the next year. Sources: Freddie Mac, Zillow & HousingWire

Fifty-four percent of for-sale listings of existing homes are within reach for a median-income household in the U.S., according to a new analysis by realtor.com®. Their analysts used the national median income of $51,801 to determine how many of the site’s 1.6 million listings would be affordable to an average family, while also assuming a 20 percent down payment and 30-year fixed-rate mortgage. The monthly payment couldn’t exceed 28 percent of the family’s income. “So far this year we are hearing from home shoppers that finding a home that meets their needs or budget is the biggest impediment to buying,” says Jonathan Smoke, realtor.com®’s chief economist. “The good news from this data is that more than half of the listings nationwide are by definition affordable.” Realtor.com® analysts also found that existing homes tended to be much more affordable than new homes. In February, realtor.com® had more than 7,700 actively selling new-home communities listed, with an inventory of nearly 57,000 homes available for sale. Only 21 percent of those new homes, however, were deemed affordable. Source: realtor.com®

As Millennials begin to enter the homebuying market in larger numbers, homes will get a little smaller, laundry rooms will be essential, and home technology will become increasingly prevalent, said panelists during an International Builders’ Show press conference on home trends and Millennials’ home preferences. NAHB Assistant Vice President of Research Rose Quint predicted that the growing numbers of first-time homebuyers will drive down home size in 2015. Three million new jobs were created in 2014, 700,000 more than the previous year “and the most since 1999,” Quint said. At the same time, regulators have reduced downpayment requirements for first-time homebuyers from five percent to three percent and home prices have seen only moderate growth. “All these events lead me to believe that more people will come into the market, and as younger, first-time buyers, they will demand smaller, more affordable homes,” Quint said. “Builders will build whatever demand calls out for.” Of the Top 10 features mentioned by home builders, four have to do with energy efficiency: Low-E windows, Energy Star-rated appliances and windows and programmable thermostats. The top features: a master bedroom walk-in closet and a separate laundry room.

Source: National Mortgage Professional

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EXTRA! EXTRA! READ ALL ABOUT IT!!

One of the most common questions we as Realtors are asked is “how is the market”? You may be surprised to know that prices are still extremely affordable and mortgage rates remain at or near historic lows. On average, sellers in Wilson County are netting a whopping 97% of the list price. Now is a great time for seller’s to list their homes especially since the inventory is at an all time low.

According to CNN Money, the latest forecast from FISV (Fiserv Case-Shiller) predicts that home prices will increase by an average of 3.3% annually over the next five years. FISV also predicts that home prices will be increasing in nearly every metro area they track by the end of 2013. This is great news for the real estate world!

Call The GTeam today for your FREE market analysis!
615-443-7653

Supply & Demand

Today’s NEWS RELEASE from the National Association of Realtors showed us that “unsold inventory is at the lowest level since January 2001”. At the end of the 4th quarter for 2012, there were 1.82million existing homes available, which is down 21.6% below last year’s numbers. Also, the existing home sales in the good ole South actually INCREASED 5% in the 4th quarter.

According to Lawerence Yun, NAR chief economist, “Home sales are on a sustained uptrend, mortgage interest rates are hovering near record lows and unsold inventory is a the lowest level in 12 years”!

You may be asking yourself, what do all these numbers really mean? Good question! The answer is: IT’S A GREAT MARKET TO SELL YOUR EXSISITING HOME!!