The Low Cost of Financing
Existing-Home Sales Report
Existing-home sales slowed slightly during the month of May according to a recent report by the National Association of Realtors (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, fell by 3.8 percent to a seasonally adjusted annual rate of 4.81 million units nationally.
Lawrence Yun, NAR chief economist, believes that current economic factors are slowing growth. "Spiking gasoline prices along with widespread severe weather hurt house shopping in April, leading to soft figures for actual closings in May," he said. "Current housing market activity indicates a very slow pace of broader economic activity, but recent reversals in oil prices are likely to mitigate the impact going forward. The pace of sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year."
Total housing inventory dropped 1 percent by the end of May to 3.72 million existing homes for sale. This represents a 9.3-month supply at today's current sales pace.
The Low Cost of Financing
Home financing costs are at historic lows, making home ownership a reality for many first time buyers! Freddie Mac is reporting that the average commitment rate for a 30-year fixed rate loan was hovering around 4.64 percent at the end of May 2011. This is slightly below the 4.84 percent commitment rate available from the month before. Many experts see rate increases on the horizon, as our nation's housing markets improve and inventory stabilizes. If you are considering a home purchase or a refinance, be sure to work with a loan officer who understands your needs, has a reputation for excellence, and is able to fund your property in a timely manner. A little homework can save you thousands of dollars. Contact us today for our list of local recommended mortgage lenders.
Summer Selling Opportunity
Sellers, you have an excellent opportunity to sell your home this season, if you have the right pricing strategy in place from the start! Studies show that the longer a property stays on the market, the less the seller will net upon the sale. It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.
An Overpriced Home:
· Minimizes offers
· Lowers agents response
· Limits qualified buyers
· Lowers showings
· Lowers prospects
· Limits financing
· Wastes advertising dollars
· Nets less for the seller
When you are ready, contact me today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!
