3 Reasons to Sell Your Home this Spring.
The impact of raising interest rates far exceeds the impact of rising home prices! However when you combine these two factors you will see your housing affordability greatly affected! With prices continuing to rise in most markets and interest rates starting to climb upward your ability to buy the home you you saw yesterday using today’s dollars becomes more difficult! Waiting to buy is costing you the home you want! Interested in learning more and finding out of home ownership is affordable for you? Contact me today and we can discuss if home ownership is right for you and what your options are!
Home Sales UP! Home Prices UP! Inventory UP! DISTRESSED SALES (SHORT SALES & FORECLOSURES) DOWN!!! Great news all around!
Even with everything that’s going on in the housing market positive signs still abound! The market was up almost 14% nationally last year! More signs that the market has healed and expect it to pick back up again this spring!
Author: Tory Barringer January 28, 2014 0
Despite experiencing a slight downturn—the first monthly decline in a year—home prices still turned in a strong performance in November, according to the S&P/Case-Shiller Home Price Indices released Tuesday.
On a monthly basis, both the 10- and 20-city composite indices saw a 0.1 percent decrease in November, marking the first decline since November 2012 and the breaking a nine-month streak of increases.
Nine of the 20 cities tracked in the indices posted positive monthly changes, while another nine reported declines. Two—Minneapolis and San Diego—were flat for the month.
Dallas, which saw a drop in prices in October, recovered to set a new index high, S&P Dow Jones Indices reported. Denver, which was climbing to new records only a few months ago, ended November 0.6 percent off its peak.
Even with national prices down month-over-month, “November was a good month for home prices,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices.
“Despite the slight decline, the 10-City and 20-City Composites showed their best November performance since 2005,” Blitzer said. “Prices typically weaken as we move closer to the winter. Las Vegas, Los Angeles and Phoenix stand out as they have posted 20 or more consecutive monthly gains.”
On a yearly basis, the 10- and 20-city composites were up 13.8 percent and 13.7 percent, respectively. The increases fell in line with the consensus forecast as reported by Bloomberg.
Again, Dallas outperformed with an annual return of 9.9 percent—the highest since its inception in 2000. Also standing out was Chicago, which posted an increase of 11.0 percent, its highest since 1988.
As of November, average home prices nationwide were back to mid-2004 levels, according to the index report. The peak-to-current decline for both composite indices remained at about 20 percent, while the trough-to-current recovery was about 23.0 percent for the 10-city and 23.7 percent for the 20-city composites.
The Case-Shiller release followed Black Knight Financial Services’ (formerly LPS) monthly Home Price Index report, which showed prices rising 0.3 percent month-over-month and 8.5 percent year-over-year in November.
Once again another great graphic showing the importance that interest rates play when you buy a home! As interest rates start to rise your purchasing power diminishes! Can you afford to wait or will you get caught when rates start to go up? Be proactive and avoid getting caught!
Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.
However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease. Here is a chart detailing this point:
If you are in the process of buying a home or thinking of buying a home here is a great article for you! Enjoy!
If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home.
There are three questions you should ask before purchasing in today’s market:
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:
What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
When looking at future housing values, we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
Here is what the experts projected in the latest survey:
A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.
Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision.
Boise Mortgage Solutions 