SALES OF HOMES RISES TO A 6 MONTH HIGH
Sales on existing homes in the US are at a 6 month high and continuing to climb.
The National Association of REALTORS® reports a seasonally adjusted figure for homes sold in March of 2015. Sales during the month topped out at 5.19 million across the country, marking a continued rise in real estate that is in keeping with the optimistic outlook that has been going on for months thanks to great interest rates that continue to fall.
Home loan rates continue to drop with the figures in the 3s. These low rates are fueling the strong housing market.
A prime mortgage borrower with excellent credit and good income can get rates close to 3.75. Borrowers eligible for FHA or VA loans can get even better rates with lower requirements. Along with extremely low interest making home loans affordable, there are many no or low down payment options available to home buyers now that make getting a mortgage loan attractive and easily accessible. The extremely positive atmosphere in lending has created an attractive situation for new home buyers. Reports show that 30% of the sales in the last few months were first time home buyers.
This strong market is keeping the real estate market moving at a record pace. The average number of days on the market was down to 52 days in the month of March. That is a 25% reduction in time since the beginning of 2015.
These statistics show that now is the best time to consider buying a home. The low interest rates make payments more affordable than they have been in 2 years.
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SALES OF EXISTING PROPERTIES: ANNUAL FIGURES SHOW 5.19 MILLION PROPERTY SALES
The Existing Home Sales report produced by the National Association of REALTORS® shows that previously occupied homes topped 5.19 million annually. This figure represents an increase of 6 percent in one month, and 10% higher sales over figures from a year ago.
These sales come at a time when inventory is disappearing as well. Part of the reason for the lack of available homes for sale is the speed at which homes are selling. Home owners had been reluctant to list homes at low prices in the slumping market. Now home sales are producing better and better sales figures and homes are valued at fair prices, making it a better opportunity for home owners looking to sell.
The dwindling inventory is shifting the market to a seller’s market. The real estate market is becoming highly competitive for right priced homes. Those homes that are priced properly are selling fast, and closing quickly. The average number of days on the market for a piece of property on the MLS listings in March was only 52 days. That figure means that at least half of the homes available sold in 52 days or less. That is the fastest since September of 2014.
An even more impressive fact is that 40% of the homes sold didn’t even get listed. They sold before they even got added to the MLS listing. This is often referred to in real estate as a “pocket listing.” Homes sold quickly and many times there were multiple offer pushing prices up.
March is typically a good month in the real estate market. The season is ripe for sales. People are feeling good after being trapped by frigid winter months, and the real estate market often spikes during spring months. That is a common real estate fact, but that isn’t the only reason home sales are strong. The general real estate market is markedly improved thanks to the relaxed requirements on loans, and excellent interest rates.
Home buyers are propelled into the real estate market by increasing rent rates as well. Higher rent rates are encouraging buyers to look at their options in the real estate market, and the options are good. Purchasing power for home buyers is up 11 percent since the beginning of 2014.
Check out today’s interest rates by clicking here.
40% OF LISTED HOMES SELL IN ONE MONTH
The economy is stronger, interest rates are falling and rent costs are rising. These combined to make March a stellar month in real estate sales in 2015. With the conditions ripe for good sales, it is suprising that more home owners aren’t listing to take advantage of the opportunities. Fannie Mae, one of the nation’s leading mortgage insurers reports that home owners are often unaware of the positive atmosphere in real estate. Many still believe their homes are worth less than what they were originally valued at. According to Fannie Mae, this is typical, and home owners often do not realize the optimal time to sell until the peak is at its utmost level or beginning to recede.
Home buyers can take advantage of this lack of confidence. Home sales move quicker with fewer negotiations when home owners are unsure of their ability to get a good price. That advantage may not last long as home owners begin to realize that they have a powerful position in a fast market.
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