Big demand and small supply means higher home prices ahead. If you’re planning to buy a home later this year I would consider moving up your time frame. Not only are home prices expected to be higher this fall, mortgage rates are as well. I wish I had a crystal ball for what happens after the election!
Multiple resources like National Multiple Listing Service (NMLS) and Ohio Association of Realtors (OAR) report that U.S. home prices have risen for the third consecutive month based on both monthly and annual calculations. Home prices rose by 2% between April and May 2012, and are expected to rise another 1.4% between May and June 2012.
While home buyers that are still trying to ready themselves for a purchase, they may not welcome the news of higher home prices ahead. It’s tough to cheer against a stabilizing housing market especially given how far home values have fallen.
Since late last year, home prices have been climbing slowly and steadily nationwide. Prices remain far below the April 2007 peak however and that’s creating opportunities for today’s home buyers with mortgage rates at below 4 percent and low down payment programs such as the FHA’s 3.5% down payment program readily available. Home buyers have more purchasing power today than at any time in history.
Assuming a $2,500 monthly mortgage payment and 20 percent down:
• Historical Average Rate (8.75%) : A $2,500 monthly mortgage payment affords a purchase price of $397,000
• Today’s Average Rate (3.66%) : A $2,500 monthly mortgage payment affords a purchase price of $682,300
More homes are going under contract to sell than at any time in the last two years and inventory is shrinking. There are fewer than 2.5 million existing homes for sale nationwide, down from 3.1 million last year, and just 145,000 newly built homes for sale.
Have you been trying to sell your home in the past few years only for it to expire? Now is the time to price it correctly, polish, stage it and get it on the market with a proven successful agent. Chose wisely! Statistics show that less than 1% of Realtors are utilizing new technology and social media to market homes although that is where the public is spending the majority of their time. Selling your home is much more than a sign in the yard and being “listed” in the local MLS.
Are you a buyer? Chose a Realtor that represents you and not just trying to make a sale – the agent should want to build a relationship, help you purchase at the best price possible in hopes of getting the listing years down the road when you are ready to sell.
Please feel free to text, email or call me if you have any questions or would just like to explore options. I love what I do and believe building relationships not hounding people. Earning trust is very important in today’s society.