Tag Archive for: home prices

New Homes for Sale Available Come at a Price

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After the housing market struggled to make a comeback after the Recession, the supply of homes for sale and new homes for sale available in the real estate market has continued to decline. Because of this the supply of homes and new homes available to buy has decreased to a crucial point. That is that there is now more demand for homes to buy than there are homes and new homes on the market for sale.

Because of the lopsided nature of supply and demand in real estate, home prices have not only continued to increase, but they are still increasing at a rapid pace. According to Core Logic, a real estate analysis company which tracks housing trends nationwide, the price of homes for sale increased by 6.8% in June, 2018, compared to June, 2017. May, 2014 was the last time that housing prices had such a high year-over-year percentage increase, which was during one of the fast-paced recovery years of real estate after the Recession.

The price of homes continuing to go up is unsustainable as mortgage rates are also on the rise, putting the cost of theCurved breakfast bar with solid surface counter tops. The hardwood floors to through the kitchen. This is an open floorplan. monthly note out of reach for some home buyers. However, as long as demand continues to outpace supply, the prices will continue to have a “seller’s market” mentality for home buyers who are able to qualify for loans.

Another factor in the increase in home prices is that prices are now double that of the growth of individual’s growth in salary. However, there are signs that home prices will start to see a slow down as the S&P/Case-Shiller 20-city index had less growth during May, 2018 than May, 2017. There are also other trends that show an overall economic slowdown that have probably not translated to the real estate housing market just yet.

What you can take away from this news is that if you have a home to sell and are wanting to buy a new home or a home for sale, you will want to make sure you are able to move quickly on buying a home and actually moving out since it truly is a seller’s market out there. If you are buying a home in the St. Tammany Parish area, Contact Ron Lee Homes about our Homes for Sale or to build the home of your dreams in Mandeville, Madisonville, Covington, Abita Springs, or Folsom! Call 985-626-7619 or email Info@RonLeeHomes.com.

 

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NSA Index Is Reporting an Increase in Home Prices

The U.S. National Home Price NSA Index is reporting an increase of 4.3% over the peak of the same index in 2006, which was at its highest level right before the housing crash.  Home prices went up in June, 2017 5.8%, which was slightly higher than May’s 5.7% increase.  The index, which is formally called the S&P CoreLogic Case-Shiller U.S. 6-Lot 127 Maison du Lac Kitchen IslandNational Home Price NSA Index, was also up 43.7% above its lowest point in 2012 after the housing market crash.  Home prices have continually risen since the real estate market began its recovery, and they continue to climb. In fact, housing pricing reached another all time high in June.

“The trend of increasing home prices is continuing,” says David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years. Currently the months-supply of existing homes for sale is low, at 4.2 months. In addition, housing starts remain below their pre-financial crisis peak as new home sales have not recovered as fast as existing home sales.”

According to Blitzer, the housing market now has the “problem” of not having enough supply to meet the demand.  Even with the increase in home pricing, there is a reason that home buyers are still purchasing homes for sale despite the continuous price increases.  Unemployment rates continue to decline, and jobs are being added to the market at an average pace of 200,000 jobs per month.  Mortgage rates have flinched with increases from the Federal Reserve, but they are still holding steady at or below 4%, which is a historically low interest rate for home buying purchases.

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It’s a Seller’s Market

Home pricing, fast home sales, bidding wars, and tighter inventory are the national trends for people selling their homes in 85% of the major markets around the United States. As the housing recovery has had a steady and substantial upward trajectory since its crash in 2008, home pricing has been both a boon and a warning for 1-50 Natchez Trace Exterior Fronteconomists worried about too much, too fast causing a double-dip Recession scenario.  For now, for the first time in a long time, sellers have the advantage with a reported $44,000 increase in equity in a home sale during the 1st quarter of 2017.

This means that price gains from a purchase increased by $44,000, according to Attom Data Solutions’ report. There hasn’t been a sales gain this high since 2007.

“I am guessing we will see it get even better before it gets worse,” said Daren Blomquist, senior vice president at Attom. “If you are considering moving this spring, it could be a really good time to sell.”

This type of return on investment real estate sales results has caused bidding wars in competitive markets that have very low housing inventories. The time on the market for a home for sale has been a factor with an average of 45 days Large Rec room that can be converted to many different living spaces.for “normal” markets and an average of just 21 days for fast-moving markets. Some homeowners thinking about selling are holding on a bit longer to see if this home pricing increase trend continues before they are willing to sell – getting the most bang for their buck. Also, “warnings” in the industry are indicating that if they do sell their home and sell it quickly, they may be stranded looking for a place to buy as the inventory is so tight. So, it can be blessing and a curse – a two-edged sword.

According to the report, the median home price for the 1st quarter of 2017 was $225,000, which is a shocking 13% increase from just a year ago. For those homeowners who went “underwater” with their mortgages during the Recession, the increase in home pricing / home equity has been a huge help, but some markets such as Las Vegas and Miami are still struggling with their housing recovery. Las Vegas is still showing a 26% decline in home pricing and Miami is at 22%.

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Conventional Mortgages for New Homes Increase for the 5th Month in a Row

When the bottom dropped out of the real estate market, the biggest indicator that the economy was in trouble was that home owners and new home buyers found themselves paying more for their home than what it was worth.  One of the biggest indicators that the housing economy has been in recovery has been the increase in house pricing regionally nationwide.  These home prices went up steadily during the end of 2013 and 2014, so much so, that investors were concerned that they would cause a housing bubble and throw the entire economy back into a 10-1 Polo Farms Kitchen IslandRecession.  Once again, though, supply and demand allowed for free market commerce to dictate the real estate market, and prices started to stabilize in the 1st quarter of 2015.

For the 5th month in a row, conventional mortgages for new homes have increased to an all-time high of $352,500 in June, and this is also a record for the average loan amount which has not yet so far been above $350,000 after the Recession.  In addition to the average amount of a loan going up, home prices also increased in June to $462,100 from $447,600 which is a 3% increase.  Also a record-breaking statistic, this is the first time that new home prices have been above $460,000 since the Recession as well.

Even though the average initial fees and charges on loans decreased by 3 basis points to 1.08%, the effetive interest rate on conventional mortgages went up to 3.98%.  Home buyers and people interested in refinancing their homes have been “spoiled” with the phenomenally low interest rates over the past 5 years, but an average overall interest rate in the 4% range is still a historically low rate and will probably not be seen again for quite some time.  The Fed was set to increase interest rates in September, but this is not a guaranteed move and has been in limbo for over a year.  Interest rates are still low, credit is easing allowing higher borrowing amounts for conventional mortgages, and Ron Lee Homes is building new, custom homes in St. Tammany Parish for interested home buyers.  Contact Us today to help you start building the home of your dreams.  Call 985-626-7619 or e-mail Info@RonLeeHomes.com.

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